A CASE ANALYSIS ON

ARCELOR-MITTAL

BRIEF HISTORY OF MITTAL STEEL:

Mittal Steel Company N.V. was one of the world's largest steel producers by
volume, and also one of the largest in turnover. The company is now part of
ArcelorMittal.[1]
CEO Lakshmi Mittal's family owned 88% of the company. Mittal Steel was based
in Rotterdam but managed from London by Mittal and his son Aditya. It was
formed when Ispat International N.V. acquired LNM Holdings N.V. (both were
already controlled by Lakshmi Mittal) and merged with International Steel Group
Inc. (the remnants of Bethlehem Steel, Republic Steel and LTV Steel) in 2004. On
25 June 2006, Mittal Steel decided to takeover Arcelor, with the new company to
be called ArcelorMittal. The takeover has been successfully approved by
shareholders and directors of Arcelor making L.N. Mittal the largest steel maker
in the world.
It was formed as Ispat International in 1978, at the time it was part of the Indian
Steel making company Ispat Industries which was founded by Lakshmi Mittal's

father and was owned by his family, but in 1995 it separated from that company
after various disagreements between Lakshmi and his father.
In 1989, the company acquired Iron & Steel Company of Trinidad & Tobago. In
1992, the company acquired Sibalsa. In 1994, the company acquired SidbecDosco. In 1995, the company acquired Hamburger Stahlwerke, which formed
Ispat International Ltd. and Ispat Shipping, and also bought Karmet Steel of
Temirtau, Kazakhstan. In 1997, the company acquired Walzdraht Hochfeld GmbH
and Stahlwerk Ruhrort. In 1997, the company went public as Ispat International
NV. In 1998, the company acquired Inland Steel Company. In 1999, the company
acquired Unimtal. In 2001, the company acquired ALFASID and Sidex. In 2002, it
bought a majority stake in Iscor. In 2003, the company acquired Nowa Huta.
In 2004, the company acquired Polskie Huty Stali, BH Steel, and certain
Macedonian facilities from Balkan Steel. In 2005, the company hired Deloitte as
the primary auditors for the company. In 2005, the company acquired
International Steel Group. In 2005, the company acquired Kryvorizhstal. In 2005,
the company announced the investment of $9 billion in Jharkhand, India. In 2006,
the company merged with Arcelor after much controversy. In 2006, the company
announced investment for a 12 million tonne capacity steel plant in Odisha, India
In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal
for $4.8 billion in an auction after a controversial earlier sale for a much lower
price to a consortium including the son-in-law of ex-President Leonid Kuchma was
cancelled by the incoming government of President Viktor Yushchenko.
In 2005 Lakshmi Mittal flew into Jharkhand, India to announce a $9 billion
investment to build a greenfield steel plant with a 12 million tonnes per annum
production capacity.
On 27 January 2006 it announced a $23.3 billion (18.6 billion, 12.7 billion) bid
for Arcelor. On 19 May 2006 Mittal increased its offer for Arcelor by 38.7% to
$32.4bn, or $47.34 per share (25.8bn, 37.74 per share). On 25 June 2006
Arcelor, in a board meeting announced that it has accepted a further sweetened
offer ($50.68 or 40.4 per share) and the new company would now be called
ArcelorMittal, thus successfully ending one of the most controversial and
publicised takeover bids in modern corporate history. ArcelorMittal is now by far
the largest steelmaker in the world by turnover as well as volume, controlling
10% of the total world steel output.

BRIEF HISTORY OF ARCELOR:

Arcelor S.A. was the world's largest steel producer in terms of turnover and the
second largest in terms of steel output, with a turnover of 30.2 billion and
shipments of 45 million metric tons of steel in 2004. The company was created
by a merger of the former companies Aceralia (Spain), Usinor (France) and Arbed
(Luxembourg) in 2002.
Employing 310,000 employees in over 60 countries, it is a major player in all its
main
markets:
automotive,
construction,
metal
processing,
primary
transformation, household appliances, and packaging, as well as general
industry. With total sales of over 30 billion, Arcelor is the world's largest steel
manufacturer in terms of turnover. It produces long steel products, flat steel
products and inox-steel. In January 2006 Arcelor announced the acquisition of
Dofasco, Canada's largest steel producer with an annual output of 4.4 million
tons. After an intense bidding war against the German ThyssenKrupp, Arcelor
had finally bid 5.6 billion Canadian dollars.

INTRODUCTION TO CASE
ArcelorMittal is the largest steel company in the world. The company was
founded in 2006 when Arcelor and Mittal Steel Company merged. The company
is headquartered in Luxemberg City, in southern Luxemberg, the former seat of
Arcelor.
Arcelor Mittal produces as much as 110 million tons of steel a year, about 10
percent of world output. The company also controls the biggest bulk handling
port in Mexico, from where it imports iron ore and exports semi-finished steel
products.
Laxmi Mittal (owner of Mittal Steel) is the president and chairman. Mittal's familyl
holds a 43.6% stake in this company. Counting all shareholders, 50.6% will be
former Arcelor shareholders and 49.4% will be former Mittal shareholders.

In addition to Lakshmi Mittal as president and chairman, the Board of Directors of

the company consists of eighteen non-executive members with six nominated by
Mittal, three chosen independently, six nominated by Arcelor, three chosen by
existing Arcelor shareholders and three employee representatives.

MERGER PROCESS
Mittal Steel Announcement Offer for Arcelor Merger proposal to create first 100
million ton plus steel producer US$40 billion merger marks step change in steel
sector consolidation
Mittal Steel N.V. (Mittal Steel) on 27 January, launched an offer to the
shareholders of Arcelor SA (Arcelor) which would create the worlds first 100
million ton plus steel producer. The offer valued each Arcelor share at 28.21
which represented a 27% premium over the closing price and all time high on
Euronext Paris of Arcelor shares on 26 January 2006, a 31% premium over the
volume weighted average price in the preceding month, and a 55% premium
over the volume weighted average share price in the preceding 12 months.
This offer valued Arcelor at an equity value of 18.6 billion on a fully diluted
basis.
The new company was expected to have:

Unprecedented scale, scope and synergies

Pro-forma* 2005 annual revenues of approximately US$69bn and EBITDA
of US$12.6bn (*IBES estimates)
Pro-forma market capitalisation of approximately US$40 billion.
Leading positions in NAFTA, EU, Central Europe, Africa and South America
Expected synergies of US$1 billion from purchasing, marketing and
manufacturing efficiencies
Exceptional raw material resources with a high degree of iron-ore selfsufficiency
Reduced volatility through geographic and product diversification
Security of long-term contracts through high value-added products
Low cost profile and high growth prospects from developing markets
Leading position across a range of key product segments
Ability to supply customers on a global basis
A dividend policy representing c. 25% of earnings over the cycle

Under the terms of the offer, Arcelor shareholders were expected to receive 4
Mittal Steel shares and 35.25 cash for every 5 Arcelor shares (equivalent to 0.8
Mittal Steel shares plus 7.05 cash for each Arcelor share). In addition, they were
to have the right to receive a cash or stock mix in any proportion they elect,
provided that 25% of the aggregate consideration paid to Arcelor shareholders
was paid in cash and 75% in stock. The maximum amount of cash to be paid by
Mittal Steel was to be approximately 4.7bn and the maximum number of Mittal

Steel shares to be issued were approximately 526.6 million, assuming the

conversion of the outstanding Arcelor Convertible Bonds (2017 OCEANEs).
Mittal Steel also announced that it had entered into an agreement with
ThyssenKrupp AG (ThyssenKrupp) to resell to ThyssenKrupp all the common
shares of Dofasco Inc (Dofasco) that Arcelor purchases in its pending tender
offer for Dofasco or later, at a price equal to the Euro equivalent of C$ 68.00 per
share, adjusted based on changes in net financial debt and net working capital
from the date of acquisition of Dofasco by Arcelor and the date of resale to
ThyssenKrupp.

HIGHLIGHTS OF THE OFFER

The offer valued each Arcelor share at 28.21 which represented a 27% premium
over the closing price of Arcelor shares on Euronext Paris as of 26 January 2006,
a 31% premium over the volume weighted average price in the preceding
month, and a 55% premium over the volume weighted average share price in
the preceding 12 months. Mittal Steel offered to acquire all of the outstanding
Arcelor shares through three offers:
1) A primary mixed cash and exchange offer for Arcelor shares consisting of 4
new Mittal Steel shares and 35.25 in cash for every 5 Arcelor shares;
2) A secondary cash offer consisting of 28.21 per each Arcelor share;
3) A secondary exchange offer consisting of 16 new Mittal Steel shares for every
15
Arcelor shares.
Arcelor shareholders could tender their shares in either the primary offer or
either or both of the secondary offers, but the two secondary offers will, in the
aggregate, comprise 75% in Mittal Steel shares and 25% in cash.
Mittal Steel also offered to acquire Arcelor Convertible Bonds (OCEANEs 2017)
based on the following exchange ratio: 4 new Mittal Steel shares and 40 in cash
for every five Arcelor Convertible Bonds. The offer was conditioned on the
tendering of more than 50% of Arcelors share capital and voting rights on a fully
diluted basis, the extraordinary shareholders meeting of Mittal Steel having
approved the issuance of new Mittal Steel shares to Arcelor shareholders (the
Mittal family having undertaken to vote in favour of the issuance of such new
Mittal Steel shares) and the absence of events or actions that would alter
Arcelors substance.
The draft offer document was filed with the Luxembourg Commission de
Surveillance du Secteur Financier (the CSSF). In order to coordinate the process
in the various jurisdictions in which Arcelor securities are listed, the offer was
also filed with the competent authorities in other countries, including in Spain
and Belgium. A draft share offering prospectus was filed with the Dutch AFM and
with the French AMF. A registration statement was filed with the US SEC.
In addition, this transaction was reviewed by antitrust authorities in the EU, the

US and possibly other jurisdictions around the world.

SYNERGIES CLAIMED
1.1 Step change in steel sector consolidation
The combination of Mittal Steel and Arcelor represents a step change in the
consolidation of the steel sector. The combined group was expected to have
approximately 320,000 employees worldwide, annual sales of more than US$69
billion and annual crude steel production of approximately 115 million metric
tons, which represents a global market share of approximately 10 per cent by
volume. This transaction was expected to create a steel company with
unprecedented scale, a strong global presence and a broad based product
offering. This unique platform was expected to provide the combined company
with unrivalled financial strength and strategic flexibility to pursue growth and
value creation opportunities. Despite a trend towards increasing consolidation
over the past few years, the global steel industry remained relatively fragmented
compared to end-market customers and raw materials suppliers. Recent
consolidation has led to increased focus amongst producers on adjusting
production to market conditions. The combination of the top two steel companies
in the world was expected to represent a further step towards achieving a
sustainable operating environment for the steel industry.
1.2 Expanding geographic footprint with leading positions in a number of regions
The geographic overlap between Mittal Steel and Arcelor was limited. This
combination was expected to create a truly global steel company with leading
positions in the five main regions (South America, NAFTA, European Union,
Central Europe and Africa). Geographic diversification was expected to reduce
volatility for the enlarged group while presenting numerous strategic
opportunities. Through its diverse asset base in both emerging and developed
markets, the company was expected to be ideally placed to take advantage of
multiple market opportunities.
Mittal Steels North American activities were to be complemented by Arcelors
strong position in Western Europe. These developed markets had expertise in
producing highly value-added products and provided opportunities for new
product development. Mittal Steel had leading positions in emerging markets in
Eastern andCentral Europe, Asia and Africa. These regions offered low cost
production, high growth prospects and in many cases, access to significant raw
material reserves.
1.3 Strengthening the range of products and solutions for global customers
The enlarged group was expected to have leading positions in a number of
product segments and have the ability to supply customers across a range of
geographic regions and in end-markets such as automotive, domestic
appliances, packaging, construction and oil and gas. The company was also
expected to have a strong value-added contract business which will allow for
reduced pricing volatility.
In the automotive sector, the new group was expected to be the leader in both

the
European Union and NAFTA regions and will also have leading positions in South
America, Eastern Europe, Africa and Asia. In appliance and packaging, the group
was expected to be the leader in the NAFTA region and one of the leaders in the
European Union. In construction, the group will have a leading position in most of
the markets it serves and a growing presence in the oil and gas sector. The
expertise of both groups in the various applications and end markets could be
combined to develop new market opportunities.
1.4 Maximising opportunities with a global distribution and trading network
Mittal Steel and Arcelor together was expected to have the ability to optimise
production and distribution on a global basis. The international production base
of the group was expected to facilitate global sourcing of materials and products
that can be directed to the markets where they are ultimately required. The
combined companys access to a broad range of customers enabled the group to
capitalise on market opportunities and expand into new areas. The combined
company was expected to eliminate cross-border trade flows and thus generate
substantial savings.
1.5 Increasing efficiency of the combined asset base through investment and
operational excellence
Mittal Steel aimed to maximise the value and opportunities within the combined
portfolio of assets. Major initiatives included:
(i) Leveraging Mittal Steels R&D capabilities for processing and product
innovation
(ii) Improving productivity through global benchmarking and continuous
improvement programmes across the network of operating units
(iii) Maximising industrial potential between units, for example through product
specialization by unit
By organising and optimising product flow and investments throughout the
production system, the company was expected to have the ability to realize
more potential and value from its asset base.
1.6 Controlling input costs by maximising the synergies from integration of
mining and steel making
Integration of mining activities with steel production was a key element of the
groups strategy. The combined company was expected to be one of the five
largest producers of iron ore worldwide and also have direct ownership of DRI
plants, coal mines, coke production and certain infrastructure assets. The group
was expected to have the opportunity to expand its mining operations in order to
reduce the dependency on third-party supplies of iron ore and coal. By 2010, the
combined group aimed to be about 50 per cent self -sufficient in iron ore.
1.7 Targeting operational synergies of US$1 billion
Target annual cost synergies were expected to reach US$1 billion before tax by
the end of 2009. The integration and restructuring costs to realize this level of
synergies were expected to be minimal. The industrial plan for the combined

entity identified several synergies, primarily from purchasing, marketing

opportunities and manufacturing process optimization.
1.8 Maximising financial opportunities
Based on the closing Mittal Steel share price on the New York Stock Exchange of
US$32.30 (equivalent to 26.45 per share at an exchange rate of US$1.2214 per
1) on 26 January 2006, the pro forma equity market capitalisation of the
enlarged group was expected to be approximately US$40 billion and the free
float was to be significantly increased to approximately 43% (assuming 100%
acceptance of the Offer). The Group was expected to benefit from a lower cost of
capital, improved access to the capital markets, enhanced profile with investors
and a high level of liquidity for trading of the companys shares. Finally, the
financial resources of the enlarged company were expected to provide the
flexibility for the Group to pursue both internal and external growth
opportunities. Mittal Steel was committed to maintaining an investment grade
rating.

GAINS FOR ARCELOR

Operations in high-growth economies with low-cost, profitable assets and local
operating expertise in numerous emerging markets
Leadership position in high-end segments in North America, with strong R&D
capabilities
Access to raw materials and upstream integration
Access to very low cost slab potential in Ukraine to serve West Europe

GAINS FOR MITTAL STEEL

Leadership position in high-end segments in Western Europe, with strong R&D
capabilities
Low-cost slab manufacturing in Brazil that can be expanded for export to Europe
and North America
Increased free float and liquidity
Successful distribution business in Europe

STRUCTURING OF THE DEAL:

The proposed transaction presented by the member Joseph Kinsch Chairman,
Arcelor ,Lakshmi N. Mittal Chairman & CEO, Mittal Steel, Gonzalo Urquijo SEVPCFO, Arcelor, Aditya Mittal President & CFO, Mittal Steel were as follows:Offer

 13 Mittal Steel shares plus 150.6 cash for 12 Arcelor shares4.

Ability to elect to receive more cash or shares, subject to 31% cash and 69%
stock paid in aggregate
Very significant premium to Arcelors pre bid all time share price high
10.1% further improvement in the offer based on latest MT share price
7.0% further improvement in the offer based on 19 May revised offer
Values Arcelor shares at 40.4 as at 23 June close
Conditions
Minimum acceptance >50.0%
No change in Arcelor or Mittal Steel substance during offer
Process
Expect to file revised offer shortly
Closing of the tender offer expected to be extended by a few days beyond 5
July
Key contract terms
Other offers
Arcelor agreed to accept no other offer for Arcelor shares unless it was a
superior offer for the entire share capital of Arcelor
No break-up fee required in contract
If shares are issued under the Strategic Alliance Agreement, corporate
governance rules and certain other conditions terminate
Standstill
Mittal family agreed to a standstill at 45% of share capital. Exceptions in
certain circumstances - consent of a majority of the independent directors or in
case of passive crossing of such thresholds
Lock up
Mittal family agreed to a 5-year lock-up, subject to certain exceptions,
including the right to dispose of up to 5% of the share capital after the 2nd year.
High standards of corporate governance
Shareholder voting rights
All shares with identical voting and economic rights: One share - one vote
regardless of holding period
Composition of initial Board of Directors
Mr Kinsch to be Chairman, Mr Mittal to be President
Upon Mr Kinschs retirement, Mr Mittal becomes Chairman

 The Board of Directors will be composed of 18 members, all non executive

(majority independent)
6 members from Arcelor
6 members from Mittal Steel
3 current representatives of existing Arcelor major shareholders
3 employee representatives
After expiry of three year period, shareholders to elect Board of Directors
Board Committees
an Audit Committee composed solely of independent directors
an Appointments and Remuneration Committee composed of 4 members,
including
the Chairman, President and 2 independent directors
Composition of Management Board
The Management Board will be comprised of 7 executive members
4 current Arcelor executives, CEO to be proposed by the Chairman
3 Mittal Steel executives

ACCOUNTING AND ADJUSTMENT:

Purchase price allocation
The Company was in the process of allocating the purchase price for its
acquisition of
Arcelor. It should be noted that all of the purchase price allocation adjustments
made and
reflected in the Companys December 31, 2006, financials (Income statement
and Balance sheet) were still preliminary and could materially change as a result
of the finalization of the purchase price allocation process . It was expected that
this allocation would be finalized in Q2 2007.
The Company recorded the following significant preliminary purchase price
adjustments:
Inventory
Inventory was increased by $1.1 billion as of the acquisition date (August 1,
2006). The
pro forma income statement excludes the effects of this adjustment.
Tangible fixed assets
The Company is being assisted by an independent appraisal firm in valuing the
tangible
fixed assets acquired and assessing the remaining useful lives of these assets.
Based on

the preliminary estimates, the Company increased the value of the tangible fixed
assets
acquired by $12.3 billion. The Company also assessed the remaining useful lives
of
these assets and concluded that the assets acquired have a longer average
remaining
useful life than previously estimated by Arcelor. The Company therefore
estimates, on a
preliminary basis, the annual additional depreciation charge to be insignificant.
Goodwill
As a result of the preliminary purchase price allocation, the Company currently
estimates
goodwill related to the acquisition of Arcelor at $6.6 billion. This amount is still
preliminary and could materially change as a result of the finalization of the
purchase price allocation process.

ARCELOR AND MITTAL BEFORE MERGER

Key Figures
Company
2005 Sales (bil.)
1-Year Sales
Growth
2005 Net
Income (bil.)
1-Year Net Income
Growth
Employees
Soucre:
Companies'
statements

Mittal

Arcelor

(MT)

(Paris:
LOR)

$28.10

$38.84

27%
$3.37

Total
$66.9
4

8%
$4.58

-28%

66%

1,75,000

96,000

$7.95

INCOME STATEMENT OF ARCELORMITTAL

BALANCE SHEET OF ARCELORMITTAL

FINANCIAL ANALYSIS

The Deal Created value by:

Strong financial performance in the second half of 2006

Full-year (EBITDA) rose 2.1% to $15.27 billion from $14.96 billion in

2005

Combined sales slightly decreased in 2006 but had a quantum jump in

2007

Sales figure for Mittal Steel more than doubled after the merger.

Net Income of the company has risen from $3.36 billion to $6.10 billion in
2006 and to $11.8 billion in 2007

Venture into new businesses and market like Luxembourg, Senegal, Liberia

Enlarged brand portfolio

ARCELORMITTAL VERSUS INDUSTRY (After

Merger)
FINANCIAL RATIOS
ArcelorMittal

Industry

5.9

48.9

P/E High - Last 5 Yrs

15.5

22.5

P/E Low - Last 5 Yrs

0.9

Beta

2.23

1.9

Price to Sales (TTM)

0.44

1.18

Valuation Ratios
P/E Ratio (TTM)

2.08

1.41

3.06

3.5

12

161.1

46.5

Dividend Yield (%)

1.6

1.8

Dividend Yield - 5 Yr Avg (%)

1.9

2.3

N.A.

23.42

21

98

Sales (MRQ) vs Qtr 1 Yr Ago (%)

-21.1

-41

Sales (TTM) vs TTM 1 Yr Ago (%)

18.7

30.5

82.59

29.06

EPS (MRQ) vs Qtr 1 Yr Ago (%)

-100

-90.8

EPS (TTM) vs TTM 1 Yr Ago (%)

-100

-90.8

44.47

3.75

131.68

49.17

Quick Ratio (MRQ)

0.7

0.9

Current Ratio (MRQ)

1.4

1.8

LT Debt to Equity (MRQ)

0.46

0.56

Total Debt to Equity (MRQ)

0.62

0.7

5.2

2.7

20

32.2

Gross Margin - 5 Yr Avg

22.6

33.2

EBITD Margin (TTM)

14.7

17.3

16.87

9.2

5.8

13.1

18.4

0.08

0.04

9.7

13.2

Price to Book (MRQ)

Price to Tangible Book (MRQ)
Price to Cash Flow (TTM)
Price to Free Cash Flow (TTM)
Dividends

Dividend 5 Yr Growth Rate (%)

Payout Ratio (TTM)

Growth Rates (%)

Sales - 5 Yr Growth Rate (%)

EPS - 5 Yr Growth Rate (%)

Capital Spending - 5 Yr Growth Rate (%)
Financial Strength

Interest Coverage (TTM)

Profitability Ratios (%)
Gross Margin (TTM)

EBITD - 5 Yr Avg
Pre-Tax Margin (TTM)
Pre-Tax Margin - 5 Yr Avg
Management Effectiveness (%)
Net Profit Margin (TTM)
Net Profit Margin - 5 Yr Avg

Return on Assets (TTM)

7.1

3.1

Return on Assets - 5 Yr Avg

7.7

10.2

Return on Investment (TTM)

11.6

4.6

Return on Investment - 5 Yr Avg

13.3

16.3

395,367.00

447,858.00

29,744.00

18,853.00

13.2

8.5

Inventory Turnover (TTM)

4.3

4.1

Asset Turnover (TTM)

0.9

0.7

Efficiency
Revenue/Employee (TTM)
Net Income/Employee (TTM)
Receivable Turnover (TTM)

The market appears to reflect a lot of worry about the future performance of
ArcelorMittal which is reflected in its low P/E ratio. Price to sales and dividend
yield are both lower for the company as compared to the steel industry. Notably,
the company pays a quarterly dividend, and although currently half what it was
in 2008, it is still a benefit for our tax exempt fund. ArcelorMittal is heavily
dependent upon developed economies, which have undergone recession and this
shows up in the companys negative earnings. ArcelorMittal is currently less
liquid but also less risky than the industry. This is evident from their quick,
current and leverage ratios. The company is currently more efficient in
controlling costs, which is reflected in their higher one-year Pre-Tax and Net Profit
Margin ratios. This also means that ArcelorMittal can produce steel at lower cost
than others in the industry. The company has higher one-year ROA & ROI, which
indicates that management has made wise investments.

FINANCIAL RATIOS
Net Profit
Margin(%)

Return On Net
Worth(%)

Asset Turnover
Earnings Per Share Debt Equity Ratio
Ratio

2011

22.81

14.68

0.98

71.58

0.64

2010

19.96

13.45

1.12

56.37

0.68

2009

21.09

21.1

1.22

69.7

1.34

2008

23.43

21.52

1.2

63.85

1.08

23.53

29.95

1.09

72.74

0.69

22.78

35.94

0.98

63.35

0.26

Year

2007
2006

CONCLUSION
Mittal- Arcelor the new entity will be based on Arcelors industrial model.

It has been decided that the management board will have seven
members, four from Acelor and three nominal from Mittal steel.

L. Mittal is the CEO and Joseph kinsch from Arcelor is the president of the
company.
The Mittal family has the 43% stake on the new entity Arcelor- Mittal.

Worlds largest and most global steel company with shipment of 49.2
million tones and revenue of over $100 billion in 2010 and net income of
$5.4 billion
No. 1 high quality steel producer with crude steel capacity with more than
70 million tons per annum
Own steel making facilities in 16 countries spanning 4 continents
Employs 2240000 people spanning 49 different nationalities
Initially mittal launched an offer of 22.7 billion dollars to acquire arcelor
Arcelor tried many tactics to reject the offer
Moreover they declared the increase in the dividend by 85%
But finally the merger happened at the valuation of 32.2 billion dollars
The business strategy that has made the mittal-arcelor steel the worlds
largest steel maker is a commitment to consolidate & globalization & a
willingness to take risks that scare off competitors.
As the steel industry overall struggled in the present decade, mittal steel
grappling with financial problems of its own, continued to expand.
And as competitors insisted that steel should remain a regional business.
Mittal steel persued its vision of becoming a global giant