Mittal vs. Arcelor 05/2008-5424 This case was written by Anne-Marie Cagna‚ Research Associate‚ INSEAD‚ and Ingo Walter‚ Visiting Professor at INSEAD and Seymour Milstein Professor of Finance‚ Corporate Governance and Ethics at the Stern School of Business‚ New York University. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2007 INSEAD N.B.: TO ORDER COPIES OF INSEAD CASES
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Arcelormittal Mittal Steel merged Arcelor * Theory A merger occurs when two companies combine to form a distinct company. A merger is very similar to an acquisition or takeover‚ except that in the case of a merger existing stockholders of both companies involved keep hold of a shared interest in the new company. When combining two or more companies in order to become one. Generally‚ by offering the stockholders of one company‚ securities in the acquiring company in exchange for the
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CASE STUDY ARCELOR-MITTAL MERGER: CHALLENGING INTEGRATION OF TWO STEEL GIANTS’ ORGANIZATIONAL IDENTITIES Preamble In the aftermath of one of this century’s most remarkable mergers‚ we find two different cultures‚ two different worlds‚ thrown into one of history’s largest corporate integrations. On the one hand‚ there is Mittal Steel - the largest producer of steel in terms of volume. Despite the fact that Mittal steel is based in Netherlands‚ it is perceived that the company is non-European because
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when Ispat International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. in 2004. On 25 June 2006‚ Mittal Steel merged with Arcelor. The merger has been successfully approved by shareholders and directors of Arcelor making Mittal the largest steel maker in the world. Mittal Steel Company was founded by an Indian steel tycoon‚ Lakshmi Nivas Mittal. L.N. Mittal played an immense role in Mittal Steel Company’s strategy
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of Engineering). Alves served as Under-Secretary of Planning at the Planning and Management Office of the Rio de Janeiro State Government. As a lecturer‚ he worked through FDC in international programs for business schools such as CKGSB‚ HULT‚ INSEAD‚ ISB‚ John Hopkins‚ Saint-Gallen‚ Skolkovo and Vlerick. Alves was also ranked 29th at the Best Business Professor Award promoted by The Economist Intelligence Unit in 2012-13. The Emerging Markets Report has a foreword written by FDC’s Director
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The company was founded in 2006 by Lakshi Mittal‚ the current Chairman and CEO. Currently there are around 220‚000 employees and profits of $7.94 billion. The company was formed through a takeover of Arcelor by Mittal. Mittal utilized a hostile takeover that was replacing a planned merger of Arcelor and Severstal. Therefore the company was formed in the name‚ ArcelorMittal. The major key factor for the company’s success was through various acquisitions. Other steel companies fell off in this area
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Memorandum To: Helen Burns‚ HR Director From: Date: 11/7/13 Subject: Derrek Fryar’s Annual Performance Evaluation As team manager‚ I am pleased to have this opportunity to give an annual performance evaluation for Derrek Fryar and suggesting a three percent raise to him. Based on Derrek Fryar’s performance from August 2012 to August 2013‚ a three percent raise is suited to encourage his future excellent performance‚ exceptional work ethic and contribution to the company.
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presence in the market is beneficial as it focuses on acquiring and improving distressed companies. These acquisitions also help contribute more capital to each country. However‚ they are also some drawbacks. In Mittal Steel’s most recent acquisition of Arcelor‚ they were many concerns. European politicians opposed this acquisition because they felt as if Mittal Steel was end India Enterprise. They thought this would have negative impacts on the European economy after the recent global crisis. QUESTION
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Mittal Steal in 2006: Changing the Global Steel Game Industry Analysis Although steel was a highly demanded good‚ the industry as a whole was largely unprofitable. One reason for this was that the industry remained highly fragmented in contrast to their suppliers and even some of their buyers‚ who were considerably more consolidated. Aside from the increased competition that fragmentation contributed to‚ it also degraded the steal industry’s bargaining power to raw material suppliers and in some
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many benefits to the countries that it enters. For instance‚ its presence in a foreign market is deemed beneficial as it focuses on acquiring distressed companies and ameliorating them. However‚ it is important to note that that was not the case for Arcelor‚ Mittal Steel’s most recent acquisition. The management and politicians were opposed the concept of a foreign firm taking over an organization that was important to the European market. Due to the recent global economic crisis‚ Mittal Steel may
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