In this and the next post, I would try to give an account as to how the “impossible” Arcelor-Mittal merger

became possible.

With a large number of parties involved, with different cultures in play, and a lot at stake, this deal promises to give many insights into the negotiation techniques used. Background Mr. Lakshmi Mittal founded Mittal Steel in 1976 in India. After a few years, Mr. Mittal found that it would take him long to grow to a significant size and wanted a way to grow fast. He found that there were various steel companies around the world, which had been performing badly, due to cyclical nature of the industry and poor management of the companies. He started acquiring these companies and turning them around through better management and economies of scale. In 2005, when Mittal Steel acquired the American steel company, ISG, it overtook Arcelor as the world’s largest steel maker, in terms of output. Towards the end of 2005, it made up its mind to acquire Arcelor, the second largest steel producer by output and the largest by turnover. Mittal Steel was headquartered in Netherlands. Arcelor was created in 2002 through merger of three major European steel companies, Arbed (Luxembourg), Aceralia (Spain) and Usinor (France). The idea was to leverage their technical, industrial, and commercial resources in order to create a global leader in the steel industry. It was headquartered in Luxembourg and Mr. Guy Dollé was the CEO. Arcelor employed thousands of people across 60 countries. Most of the employees were from Western Europe and in countries with a traditionally strong labor union. Arcelor were still in the process of integrating the business and were neither expecting nor ready for any deal, let alone a takeover offer. It is important to understand where the main people stood when the deal was proposed. This is because, finally it is after all these individuals who would consider and negotiate the deal. The personal interests would play a critical role in the entire process. Mr. Mittal, aged 55 and Mr. Dollé, aged 63 shared the same vision. They believed that the steel industry was too fragmented (top 5 companies controlled just 20% business) and was being exploited by the raw material / commodity producers (top 3 iron ore companies controlled 70% business) as well as consumer companies (top 5 automobile companies control 70% business). Consolidation was required and both wanted to emerge as the leader once it gets achieved. Both had contributed their fair share to this process of consolidation in the industry. Their aim was to do things in a way that, before they retire, the companies reach a dominating position in the industry. And that they are considered responsible for that leading position of their companies. The Offer On January 27, 2006, Mittal Steel unveiled an unsolicited $22.7 billion bid for Luxembourg-based Arcelor. As we have already seen, that both companies had been acquiring others in the industry. Both thought that it was a competition against each other. They had been part of various bidding fights for acquisitions of steel companies. But at least one side was not thinking of both going hand in hand against all others.

In one such typical bidding, the steel company, Kryvorizhstal of Ukraine was on the block. Many companies entered the fray and the price kept on increasing. Mittal Steel and Arcelor were the last two remaining in the tussle, and the price increased from $3.5bn (when the last company left leaving these two) to $4.8bn where Mittal Steel won the bid. There was clear scope for “saving” money in such context. Mr. Aditya Mittal, son of Lakshmi Mittal, was of the view that there were a large number of synergies between the two companies – not to mention getting better valuations while buying different companies. There were complementary strengths that could be leveraged. After intense internal discussions, they decided to take the leap, and find ways to make this acquisition possible. The Process of the Initial Offer Generally, in such acquisitions, the acquirer company would like to have a co-operative discussion and settlement. After acquiring, the acquirer is dependent on the target firm for collaboration – from executives, employees etc. In addition, the acquirer would like to be seen not as a predator but someone who would make the company achieve greater heights and also help the employees improve their standard of living – something which makes it preferable to go for a co-operative process. As we know that, they finally had to resort to go towards a competitive process but they did that when it became a necessity. I believe one has to be ready for this as well for the other side’s rationale might be very different and sometimes there might be seemingly irrational behavior as well that would necessitate such a process. Whom to approach – The best foot forward One important issue is how the discussion with the target should get started. Research suggests that extroversion, agreeableness and cognitive ability of the negotiators play a major role in the negotiation. So, a person on the other side with these attributes should be preferred, especially when it comes to the initial stages. This particular person is the potential harbinger of the proposed deal in the target. The Mittals found such a person at Arcelor – Mr. Alain Davezac, Senior Vice-President, International Business Development, Arcelor (Cognitive Ability). He had been dealing with the extended Mittal family before (Agreeableness) and was an outgoing person (Extroversion). He was enchanted with Buddhism and had dealt with Indians & Indian Companies extensively before in his career. Mr. Aditya thought that it was important to make Mr. Alain up to terms with what has been going on at the Mittals side, and show him the benefits of the collaboration between the two companies. In addition, if everything goes on well, it is Aditya and Alain that would have to do bulk of the work during integration, and so it was best that they became acquainted with each other at the earliest. Where to discuss and the occasion? Issues such as where do the meetings take place; who all are part of the meeting; how are they treated etc, though they might seem trivial, play a very important role. After discussions with Alain for some time and a couple of meets, the Mittals thought that it was now time to involve the CEO of Arcelor, Mr. Dollé. Instead of having a formal meeting at some office or hotel, Mr. Dollé and Mr. Alain were invited to a dinner meeting on 13th January, 2006 at the grand Mittal’s home in London (the world’s most expensive house at that time). We believe that it was a way to show the other party that they would be dealing with someone who is not less equal in any possible way. It was also to settle any apprehensions regarding the Mittal’s ability to handle the large company, that might arise once they come to know about their proposal. The Mittals might also be looking to gain an upper hand (through the venue and the fact that they are the hosts) before the start of the formal negotiations. The negotiations before the negotiation – The notorious dinner When the dinner was planned, little did anyone know that it would become such a quoted event in the future. The Mittals did not want to indicate on an outright basis that there would be a deal coming. They wanted to explore the possibility and see the reaction of the other side. As per Mittal Steel’s prospectus for the Arcelor offer, the issue of the

the free encyclopedia ArcelorMittal. Dofasco. but the meeting could not take place as Mr Dollé had to follow-up on their proposed acquisition of the Canadian company. Dollé’s reaction was “non-committal” and that he pointed out the issues that would arise and the risks involved. So that Dofasco can be done away with. Now or Never This was an inflection point in the whole deal. and it was their counterparts that did not co-operate. Luxembourg Area served Worldwide . it would get tougher to merge. The part of the conversation related to the merger was only for 4-5 minutes. The Mittals knew that if Arcelor went ahead with the Dofasco deal. Without wasting any more time. They signed a binding agreement with ThyssenKrupp AG (that was also involved previously in bidding for Dofasco) about selling Dofasco to them. Alain on 26th January. BMAD: MTS. they needed to find an alternate for Dofasco in case they are successful in going ahead with merging with Arcelor. Wiki ArcelorMittal From Wikipedia.A. The offer was announced the next day. they wanted to do as much as possible that would make them look as if the were on the “right” side. 2006 (after markets closed) about their plans to announce an Offer on 27th January.LuxSE: MT) Industry Steel Founded 2006 Headquarters Avenue de la Liberté. The Mittals had gotten the sense that management at Arcelor. However. both sides decided to meet again to discuss about the merger specifically. Dollé (who reportedly hung up on hearing about the Offer announcement) and Mr.merger was brought up at the dinner meeting but Mr. Dollé would not be too keen on such a proposal. specifically Mr. S. possibly due to anti-trust conditions and due to Arcelor becoming a larger company. Type Société Anonyme(Euronext: MT. after the merger. the Mittals informed Mr. A week after the dinner.Luxembourg.NYSE: MT. Mr Dollé later said that the conversation was friendly but did not give any details.

com ArcelorMittal is a global steel company headquartered in Avenue de la Liberté. Asia.arcelormittal. from emerging to mature.10 billion (2010) [1] Employees 263. North America. flat steel products. It is thelargest steel producing company in the world[2] and is the market leader in steel for use in automotive. ArcelorMittal is looking to develop positions in the high-growth Indian and Chinese markets.Key people Lakshmi Mittal (Chairman andCEO). ArcelorMittal key financials for 2007 show revenues of US$105.9 billion (2010) [1] Total equity US $66.605 billion (2010) [1] Profit US $2. with a crude steel production of 116 million tonnes. and South America gives the Group exposure to all the key steel markets. The company was formed in 2006 by the merger of Arcelor and Mittal Steel.916 billion (2010) [1] Total assets US $130. Luxembourg. Contents [hide] • • • • • • 1 History 2 Organizational structure 3 Head office 4 See also 5 References 6 External links [edit]History Its industrial presence in Europe. construction. wire products.000 (end 2010) [1] Website www. long steel products. Luxembourg. plates Revenue US $78. It ranks 99th on the 2010 Fortune Global 500 list.2 billion. representing around 10% of the world steel output.household appliances and packaging. It holds sizeable captive supplies of raw materials and operates extensive distribution networks. . Aditya Mittal (CFO) Products Steel.03 billion (2010) [1] Operating income US $3. Africa.

On 26 January 2011. Bilbao.ArcelorMittal is listed on the stock exchanges of New York. [edit]Head office  Headquarters inLuxembourg City  Headquarters in Luxembourg City  . Paris. Sudhir Maheshwari. Madrid and Valencia. IL. Luxembourg and on the Spanish stock exchanges of Barcelona. Christophe Cornier. Michel Wurth. NY and LTV Steel in Hennepin. Davinder Chugh and Peter Kukielski. The composition of ArcelorMittal's Group Management Board is as follows: Lakshmi N. the Stainless steel division split off as a new company. with ArcelorMittal being hit the hardest. Aperam. is the Chairman and CEO. Amsterdam. Gonzalo Urquijo. including the former Bethlehem Steel plant inLackawanna.37B. Aditya Mittal (CFO). Brussels. Mittal (Chairman and CEO).[4] In December 2008.[3] As of 4 November 2008. The composition of the Board of Directors reflects the principles agreed in the memorandum of understanding dated 25 June 2006. ArcelorMittal announced several plant closings. On 30 June 2010. the market capitalisation of ArcelorMittal was $35. [edit]Organizational structure Lakshmi Mittal (owner of Mittal Steel). ArcelorMittal's 11-member Board of Directors is responsible for the overall supervision of the company. the European Commission fined 17 steel producers a total of €518M for running a price-fixing cartel.

365 billion (2005) Employees 320. and 600 employees work there.746 billion (2005) Net income $3. The building was the head office of Arbed before that company merged withAceralia and Usinor. 1989 as Ispat International inSumatra. India.V. N. Coated Steel. Indonesia Headquarters Rotterdam. Tubes and Pipes Revenue $28. Netherlands Key people Lakshmi Mittal.132 billion USD Year to 31 Dec 2005 Operating income $4.000 (2006) . Chairman and CEO Products Steel.Headquarters in Luxembourg City The head office of ArcelorMittal is in Luxembourg City. the free encyclopedia Mittal Steel Company. Founder. Type subsidiary of ArcelorMittal Industry Steel Founded 1976 in Calcutta. Flat Steel products.[5] [edit]See also Luxembourg portal Companies portal  ArcelorMittal Orbit Mittal Steel Company From Wikipedia.

In 1997. the company Investment for 12 million tonnes capacity steel plant announced in Orissa.4bn. the company acquired Iron & Steel Company of Trinidad & Tobago. the company acquired International Steel Group. In 2005. £12. thus successfully ending one of the most controversial and publicised takeover bids in modern corporate history. In 2006.68 or €40. and also one of the largests in turnover. Mittal Steel was based in Rotterdam but. and Karmet. the company acquired Unimétal. In 1994.6 billion.8bn. In 2004.34 per share (€25. the company acquired Sidbec-Dosco. The company is now part of ArcelorMittal.3 billion (€18. managed fromLondon by Mittal and his son Aditya. the company Acquisitions of Hamburger Stahlwerke.7 billion) bid for Arcelor. (the remnants of Bethlehem Steel. €37. the company Acquisitions of Walzdraht Hochfeld GmbH and Stahlwerk Ruhrort. ArcelorMittal is now by far the largest steelmaker in the world by turnover as well as volume. the company acquired Inland Steel Company. acquired LNM Holdings N. Republic Steel and LTV Steel) in 2004.74 per share). BH Steel.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. It was formed when Ispat International N. In 2005. In 1995. In 2005 Lakshmi Mittal flew into Jharkhand. the company Acquire 34% stake in Uttam Galva. Mittal the largest steel maker in the world. In 2005. the company HireDeloitte as the primary auditors for the company. or $47. On 19 May 2006 Mittal increased its offer for Arcelor by 38.N. [1] . Creation of Mittal Steel. controlling 10% of the total world steel output. the company Investment of $9 billion in Jharkhand.Website Mittal Steel Mittal Steel Company N. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. In 2006. which formed Ispat International Ltd. the company Merger with Arcelor announced and completed after much controversy. the company acquired Sibalsa.4 per share) and the new company would now be called ArcelorMittal. In 2001. India announced. In 1997. was one of the world's largest steel producers by volume. Mittal Steel decided to merge with Arcelor. Macedonian facilities from Balkan Steel. the company acquired Nowa Huta. In 2005.7% to $32. On 25 June 2006 Arcelor. On 27 January 2006 it announced a $23. in a board meeting announced that it has accepted a further sweetened offer ($50. In 2009. Contents [hide] • • • • 1 History 2 Bids and acquisitions 3 See also 4 References [edit]History In 1989.V. the company Acquisitions of Polskie Huty Stali. India to announce a $9 billion investment to build a greenfield steel plant with a 12 million tonnes per annum production capacity. In 2002. and Ispat Shipping. India. the company Acquisitions of ALFASID and Sidex. the company acquired Kryvorizhstal.V. the company Ispat International NV goes public.[1] CEO Lakshmi Mittal's family owned 88% of the company. the company Business assistance agreement signed with Iscor. The merger has been successfully approved by shareholders and directors of Arcelor making L. In 1998. On 25 June 2006. In 2003. In 1999. [edit]Bids and acquisitions In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal for $4. In 1992. with the new company to be called Arcelor Mittal.V.

Contents [hide] .A.Luxembourg Key people Lakshmi Mittal. the free encyclopedia Arcelor S. Usinor (France) and Arbed (Luxembourg) in 2002. CEO of the Arcelor Mittal group Products Steel Revenue € 32.2 billion and shipments of 45 million metric tons of steel in 2004.611 billion (2005) Employees 94.000 Website www. 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.A. Type subsidiary Industry Steel Founded Arbed in 1911 Aceralia in 1902 Usinor in 1948 Arcelor on 18 February 2002 Headquarters Luxembourg City.[edit] Arcelor From Wikipedia. The company was created by a merger of the former companies Aceralia (Spain).arcelor.com Arcelor S. Arcelor is now part of Arcelor Mittal.

[edit]Reaction to the takeover Arcelor's directors strongly opposed the takeover. primary transformation. Lakshmi Mittal (owner of Mittal Steel) became the president and Joseph Kinsch (formerly Arcelor chairman) was appointed chairman of the new company till his retirement. on the other hand.4 million tons.000 employees in over 60 countries. The high bid proves the importance of Arcelor's improving presence in the North American market. increasing its bargaining power with suppliers and consumers. flat steel products and inox-steel. After an intense bidding war against the German ThyssenKrupp. The Belgian government. Arcelor had finally bid 5. media and shareholders have questioned the intentions of Arcelor in announcing its merger with Severstal due to a perceived opacity in the transaction. In January 2006 Arcelor announced the acquisition of Dofasco. Mittal steel has agreed to pay 40. it is a major player in all its main markets: automotive. Since then several economists. as did the governments of France.construction.6 billion Canadian dollars. Luxembourg and Spain.1 Flat steel products 4 See also 5 References 6 External links [edit]Business Employing 310. as well as general industry. The new company is now called "Arcelor Mittal".[1] However. The French opposition was initially very fierce and . But on 25 June 2006. almost double the amount offered by Mittal last time. Arcelor is the world's largest steel manufacturer in terms of turnover.37 euros a share to Arcelor. Guillermo Ulacia and Jacques Chabanier also resigned suddenly. the bid resulted in substantial increase in Arcelor's share value. metal processing. the Arcelor board decided to go ahead with the merger with Mittal Steel and scrapped plans for Severstal merger. [edit]Merger with Mittal Steel Wikinews has related news:Arcelor declares merger with Mittal Steel The company was the target of a takeover bid by its rival Mittal Steel on 2006-01-27. Arcelor also paid Severstal €140 million as a "fine" for the fall-out of their failed talks. It produces long steel products.[3][4] Arcelor's merger with Mittal created the worldwide leader in the steel industry.1 Reaction to the takeover 3 Products 3. 2006 Arcelor announced its intention to merge with Severstal. declared its stance as neutral and invited both parties to deliver a business plan with the future investments in research in the Belgian steel plants. Canada's largest steel producer with an annual output of 4.[2] On May 26. household appliances.• • o • o • • • 1 Business 2 Merger with Mittal Steel 2. With total sales of over €30 billion. Two members of the board of Arcelor. and packaging.

Fos-sur-Mer. long steel products and stainless steel. Piombino. Indian commerce minister Kamal Nath warned that any attempt by France to block the deal would lead to a trade war between India and France. Despite the fact that Mittal steel is based in Netherlands. Liège. Management of Arcelor had in fact undervalued the company itself. the largest steel maker in the world. the merger of three steel companiesAceralia. Arcelor had revenues of 32 billion Euros. On June 26.the acquisition of Arcelor Steel by Mittal Steel led to the creation of Arcelor-Mittal. The capability of management which had openly supported the previous valuation of Arcelor came into question. it is perceived that the company is non-European because its CEO Lakshmi Mittal is Indian. the Board of Directors recommended the approval of the improved Mittal offer (49% improvement compared to the initial offer with 108% improvement of the cash component).has been criticized in the British. . Florange.the largest producer of steel in terms of volume. Arbed and Usinor led to the creation of Arcelor. Bremen.MITTAL CONTROVERSY One of the most controversial business deals ever. Luxembourg and Spain chided Arcelor management and suspended trading of its stock. [edit]Products The products of Arcelor are divided into three groups: Flat steel products. Background (before the deal) Mittal Steel. 1. Further the combined markets of France. [edit]Flat steel products The main production sites of flat steel products are Ghent-Zelzate. Gijón. American and Indian media as double standards and economic nationalism in Europe. proposed the creation of Arcelor-Mittal with industrial and corporate governance model based on Arcelor and scheduled a corporate meeting for June 30 to vote on this.Headquartered in Luxembourg. Avilés. Arcelor. In 2005. Belgium. Eisenhüttenstadt and recently São Francisco do Sul in Brazil. [edit] ARCELOR. Dunkirk. the above claim by economists was confirmed when Severstal increased its valuation of Arcelor.[5] On June 20.

Arcelor shareholders would have received 4 Mittal Steel shares and 35 euros for every 5 Arcelor shares they held.7 billion offer to Arcelor’s shareholders. The original bid In January 2006. LN Mittal believes that the consolidation will end with three of four major companies dominating the industry around 2010. Consolidation in the steel industry. access to more markets.2. .inevitable: • • • The steel industry is highly fragmented. Under the offer. the corresponding figure for the automotive industry is 73 percent). The deal was split between Mittal Shares (75 percent) and cash (25 percent). Bigger steel manufacturers have better bargaining powers against customers (such as as auto manufacturers) and against suppliers (iron ore). (Ultimately the power to buy or sell the shares rests with the shareholder and the company management can at best advice its shareholders whether to accept or reject the bid) 3. better utilization. more flexibility in production scheduling and better efficiency. Consolidation helps in comapnies improving their sourcing of raw materials. the top 5 manufacturers in the steel industry account for less than 25 percent of the market (to put that in perspective. Mittal Steel launched a $22.

Role of Guy Dolle (then CEO of Arcelor) Mr. the Arcelor management tried to convince shareholders that this was the best deal for them. son of LN Mittal is on the board). Analysts believe that Guy Dolle had issues with the personality of LN Mittal. Dolle also raised a number of issues about the safety record of Mittal and also repeatedly pointed out that Arcelor was absolute key to Europe’s economic health. Despite the merger plan being fraught with loopholes. 6. Dolle raised several issues including the management of Mittal (Aditya Mittal. This merger would have made the new Severstal-Arcelor entity too big for Mittal Steel to buy. This was seen as an attempt by the company to convince shareholders that the situation under the current management was extremely positive. Many analysts accused the company of “creative” accounting.2 Euros. The shareholders however rejected the merger with not one shareholder voting in favour of the merger. (all this despite the fact that most industry analysts and investment banks pointing out that the deal was in Arcelor‘s best interests) European Governments: The French government (despite not being a shareholder) was against the deal because of worries over its 28000 Arcelor employees. Moves by Arcelor to counter the bid by Mittal: Declaration of Dividend: On February 16. Arcelor repeatedly played the patriotic card in order for shareholders to reject the bid. The management was extremely hostile to Mittal Steel’s bid from the beginning. Dolle’s reaction to the Mittal bid led to widespread criticism of his actions. <!--[if !supportEmptyParas]--> <!--[endif]--> The Russian Angle: In an attempt to thwart the offer from Mittal Steel. 7)The stance of the Indian Government . Despite repeated assurances from Mittal that the deal would not lead to layoffs the government of France was never convinced. Arcelor released a 13 billion Euro merger plan with Severstal.4. Arcelor declared a dividend of 1. The government of Luxembourg (a stakeholder) was against the deal as well for a variety of reasons. a Russian company. The Controversy Arcelor Management: The management believed that Arcelor itself would have been doing the acquisitions and not the other way around. The CEO of Arcelor dismissed Mittal Steel as a “company of Indians” and unworthy of taking over a European company. which was 85 percent higher than the previous dividend in 2004. 5. The European Union approved of the MittalArcelor deal. Guy Dolle is not a part of the new Arcelor-Mittal organization. As the controversy panned out.

Mittal had to however considerably sweeten the initial offer.http://www. The Indian government raised the issue at several forums especially through commerce minister Kamal Nath. The irony is that LN Mittal himself felt that there was no case of “racism” here as Mittal Steel was a European company and NOT an Indian one.6 per cent of Arcelor.html#ixzz1HIHaQwII Steel struggle: Mittal Steel/Arcelor Published: May 22 2006 11:58 | Last updated: May 22 2006 11:58 Jan 27. vows to use “all necessary means” to fend off Mittal’s unsolicited offer Feb 16: Arcelor raises 2005 dividend by 85 per cent.MSNBC Please respect FT. The combined company holds 10 percent of the global market for steel. Under severe pressure to counteract the Arcelor. 2006: Mittal Steel unveils €18.com's ts&cs and copyright policy which allow you to: share links.• • • Most Indians were of the opinion that the deal was not getting pushed through because of Lakshmi Mittal’s nationality. External Links: • • Timeline of the Mittal Arcelor Deal. which holds 5. business model and values” Jan 31: Jean-Claude Juncker.85 Apr 28: Arcelor chairman says supervisory board would think again if Mittal made a cash bid May 9: Mittal says it is willing to revise terms if Arcelor board recommends its bid May 12: Arcelor says it will implement €5bn share buy-back . 8. It was also alleged that India had threatened not to ratify a taxation accord with Luxembourg due to the latter’s opposition to the deal.Severstal merger. Mittal had to raise its valuation of Arcelor to $32.com/cms/s/2c8e7d6c-904d-11db-a4b90000779e2340. copy content for personal use. Raises 2005 dividend to €1.Financial Times Lakshmi Nivas Mittal (Man of Steel). Apr 4: Arcelor says it will distribute €5bn to shareholders. prime minister of Luxembourg. The consolidation phase is well and truly underway .9 billion. End Result The deal was finally clinched when the shareholders of Arcelor agreed to Mittal Steel’s offer ending the transaction that had dragged on for months.6bn cash and share offer for Arcelor Jan 29: Arcelor directors reject Mittal’s offer as “150 per cent hostile”. Email ftsales. saying the companies “do not share same vision.ft.com to buy additional rights or use this link to reference the article .support@ft. The Mittal family holds 43 percent of the combined group. & redistribute limited extracts.

May 17: Mittal launches offer after regulators approve terms of the deal May 18: Mittal raises offer by 34 per cent to €25. but leaves the door open for an increased offer from Mittal and gives shareholders the chance to vote June 18: Arcelor cancels shareholder vote on Severstal June 20: Spanish investor forces Severstal rethink after calling for management changes at Arcelor June 21: Severstal changes terms of its proposed merger with Arcelor to counter shareholder fears June 25: Arcelor recommends upgraded €26. the free encyclopedia Lakshmi Mittal Born 15 June 1950 (age 60) . May 25: Arcelor agrees to join forces with Russian steelmaker.8bn bid and reiterates plans to press ahead with Severstal merger.8bn with a 57 per cent increase in cash component. New deal would relinquish Mittal family control of group.9bn Mittal offer after intensive talks Lakshmi Mittal From Wikipedia. Severstal May 30: Leading Arcelor shareholders speak out against proposed Severstal merger May 31: More than a third of Arcelor investors sign a letter demanding the right to vote on a deal June 7: Arcelor agrees to meet representatives from Mittal June 11: Arcelor formally rejects Mittal’s €25.

member of the Board of Directors of European Aeronautic Defence and Space Company. born 15 June 1950)[4] is an Indian steel magnate. Mittal is the second richest man in Europe[5] and is presently the sixth richest in the world with a personal wealth ofUS$31. the International Investment Council in South Africa. London Chapter. Financial Times named him "Person of the Year".[6][7] He is an independent director of Goldman Sachs. India Residence London. In 2006. the World Steel Association's Executive Committee. His daughter Vanisha Mittal's marriage was the most expensive in the recorded history of the world. One out of 5 cars in the world is made up of the steel materials of his steel empire. Foreign Investment Council in Kazakhstan.[3] He is the 44th most powerful person of the 68 most powerful people in the world. the world’s largest steelmaking company. He is the chairmanand chief executive officer of ArcelorMittal.8 billion. Rajasthan.[9] He also presently serves as a board council member of the Prime Minister of India's Global Advisory Council of Overseas Indians. Xavier's College. Calcutta[1] Occupation Chairman & CEO ArcelorMittal Owner of Karrick Limited[2] Net worth US$31. the Presidential International Advisory Board of Mozambique and the International Iron and Steel Institute’s Executive Committee. United Kingdom Ethnicity Indian Citizenship India Alma mater St. Calcutta Alumni Association. the Investors' Council to the Cabinet of Ministers of Ukraine. Contents [hide] . Time magazine included him in their "100 most influential persons in the world". the World Economic Forum’s International Business Council.[10] and members in the Advisory Board of the Kellogg School of Management.[8] World Steel Association.1 billion (2011)[3] Religion Hinduism Children Vanisha Mittal Aditya Mittal Lakshmi Narayan Mittal (Hindi: लकमी िमतल.1 billion or £23. Xavier's College.Sadulpur. Executive Board atIndian School of Business and St. In 2007.

branched out on his the LNM Group. Mohan Lal Mittal. the family business. when the family founded its own steel business. Today. including a large integrated steel plant near Mumbai. He graduated from St.5 Environmental damage 5 Personal life 6 Awards and Honours 7 Bibliography 8 See also 9 References 10 External links life Lakshmi Mittal was born into a Marwari business family in Churu district of Rajasthan. Nippon Denro Ispat. He has two siblings (brothers) named Pramod Mittal and Vinod Mittal. entrepreneurship. India.1 PHS 4. His father. His family moved from Sadulpur. Xavier's College. the daughter of a well-to-do moneylender.2 Slave-labour allegations and abhorrent safety records 4. is run by Lakshmi's brothers.[11] Mittal started his career working in the family's steel making business in India. when a donation he made to the Labour party led to Blair's intervention in a business deal favoring Mittal. Pramod and Vinod. due to differences with his father. Calcutta where he graduated with a Bachelor of Commerce degree in business and accounting with first class. and in 1976. Rajasthan to Calcutta in West Bengal. with shipments of 42. Shortly afterwards he married Usha. Mittal pioneered the development of integrated mini-mills and the use of direct reduced iron or "DRI" as a scrap substitute for steelmaking and led the consolidation process of the global steel industry. It was announced later that he donated £2 million to the Labour Party. In 2002. mother and brothers. Mittal Steel is a global steel producer with operations in 14 countries. and he has been responsible for the development of its businesses ever since. leadership and success in global steel development from Metal Market and PaineWeber’s World Steel Dynamics. Mittal was awarded Fortune magazine's "European Businessman of the Year 2004" and also "Steelmaker of the Year" in 1996 by New Steel. the family's main assets in India were a cold-rolling mill for sheet steels in Nagpur and an alloy steels plant near Pune. ran a steel business. he set out to establish its international division. Until the 1990s.• • • • o o o o o • • • • • • [edit]Early 1 Early life 2 London 2012 Olympics and Paralympic Games 3 Philanthropy 4 Criticism and allegations 4.1 million tons of steel and profits of over $22 billion in 2004.Also conducting charitable activity at his home town. beginning with the buying of a run-down plant in Indonesia. Mittal Steel is the largest steelmaker in the world. for outstanding vision.4 Queens Park Rangers We're Top of the league! 4. . and the "Willy Korf Steel Vision Award" in 1998. but Lakshmi has no connection with it.3 The Mittal Affair: "Cash for Influence" 4. In 1976. he was involved in a political scandal with British Prime Minister Tony Blair.

Jaipur" is producing quality engineers since 2003. 15 million).1 million project. the largest artistic commission in the world. ArcelorMittal also has a very active CSR program under which it sets out its path to produce Safe Sustainable Steel. at the 2004 Summer Olympics. "The miners all agree: compared with life now under Mittal. [edit]Criticism and allegations [edit]PHS Lakshmi Mittal successfully employed Marek Dochnal's consultancy to influence Polish officials in the privatization of PHS steel group. "The pressures local managers put us under to meet targets so that they can collect their bonuses are more and more stressful.[13] In 2008. in the 2000 Summer Olympics. the sculpture will consist of a continuous looping lattice of tubular steel and offer unparalleled view of the entire Olympic Park and London's skyline from a special viewing platform. with the outstanding £3. Mittal decided to set upMittal Champions Trust with US$9 million to support 10 Indian athletes with world-beating potential.[12] The ArcelorMittal Orbit. Polish government said it wants to renegotiate the 2004 sale to Arcelor Mittal. Witnesses to a 2006 explosion. Mr. One employee even told the Times. 1." Former miner turned trade unionist Pavel Shumkin even claimed. managers at the mines pushed the employees to work so that they could meet their production as well as other targets. silver.5 Crore (Rs. which provides support to many different community projects around the world in the countries where ArcelorMittal operates. the sculpture not only represents a significant cultural investment .but will also make a significant financial contribution to the long-term regeneration of East London. We are being exploited like animals. Mittal awarded Abhinav Bindra with Rs. Constructed with steel provided by ArcelorMittal. will fund £16 million of the £19.1 million provided by the London Development Agency.[12] [edit]Philanthropy After witnessing India win only one medal. for getting India its first individual Olympic gold medal in shooting."[17] [edit]The Mittal Affair: "Cash for Influence" Main article: Mittal Affair . he matched the money raised (~£1 million) on the celebrity special BBC programme. The Apprentice. will harness state-of-the-art engineering and architectural techniques. His institute "The Lakshmi Niwas Mittal Institute of Information Technology.[edit]London 2012 Olympics and Paralympic Games ArcelorMittal. which was Poland's largest.[16] During December 2004. and one medal. The company also operates the ArcelorMittal Foundation. for them everything was better in Soviet times. bronze. For Comic Relief 2007. Dochnal was later arrested for bribing Polish officials on behalf of Russian agents in a separate affair. which claimed the lives of 41 people. the lax standards were responsible for the deaths of 91 coalminers and the subject of a criminal investigation. As such. twenty-three miners died in explosions in his mines in Kazakhstan caused by faulty gas detectors.[15] [edit]Slave-labour allegations and abhorrent safety records Employees of Mittal have accused him of "slave labour" conditions after multiple fatalities in his mines. led by Chairman and CEO Lakshmi Mittal. Between 2004 and 2007. despite the plumes of flammable gas. maintain that.the largest single artwork ever commissioned for any Olympiad . Mittal has been accused of running a series of coal mines in Kazakhstan with abhorrent safety records.[14] In 2007.

The Bishops Avenue.[24] [edit]Environmental damage Mittal purchased the Irish Steel plant based in Cork from the government for a nominal fee of £1. formerly owned by financier Noam Gottesman. which is dubbed as "Millionares Row" and is reportedly for sale at £40 million. The Mittal mansion is coming up in one of the most elite neighbourhoods. describing Mittal as "a friend. In 2005. Flavio Briatore resigned as QPR chairman.[18] The letter had a passage in it removed just prior to Blair's signing of it. and sold further shares in the club to Mittal. The combined investment in the struggling club sparked suggestions that Mittal might be looking to join the growing ranks of wealthy individuals investing heavily in English football and emulating other similar benefactors such as Roman Abramovich." On facebook.5 million at No. Mittal had emerged as a leading contender to buy and sell Barclays Premiership clubs Wigan and Everton. However on 20 December 2007 it was announced that the Mittal family had purchased a 20 per cent shareholding in Queens Park Rangers football club joining Flavio Briatore and Mittal's friend Bernie Ecclestone. Aurangzeb Road in New Delhi. This .9a Palace Greens. he also bought a colonial bungalow for $7. Amit Bhatia. took a place on the board of directors. at £117 million for his son Aditya Mittal who is married toMegha Mittal owner and director of the Board of the German fashion luxury brand Escada. The Government tried to sue in the High Court to have him pay for the clean-up of Cork Harbour but failed.22. hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.[25] [edit]Personal life He presently lives in Kensington. sought Blair's aid in its bid to purchase Romania's state steel industry. at £70 million in 2008 for his daughter Vanisha Mittal Bhatia who is married to Amit Bhatia a businessman and a philanthropist. formerly the Filipino embassy. Three years later in 2001. valued at around £15 million. Kensington Gardens.[22] As part of the investment Mittal's son-in-law. In January 2011 Lakshmi Mittal bought a luxury home in Scotland. Turkish baths and parking for 20 cars.Controversy erupted in 2002 as Plaid MP Adam Price exposed the link between UK prime minister Tony Blair and Mittal in the Mittal Affair.[26] Mittal's house in Kensington. an indoor pool. it was closed.[28] Mittal bought No. leaving 400 people redundant.[21] [edit]Queens Park Rangers We're Top of the league! Recently.000 plus workforce in the UK.[18][19][20] Mittal's LNM steel company. making it Scotland’s most expensive home. Kensington Gardens.[23] On 19 February 2010. a copy of which Price was able to obtain. Mittal bought No.[27] It has 12 bedrooms. Subsequent environmental issues at the site have been a cause for criticism. [29] Mittal also owns a house called Summer Palace at 46B.6 Palace Greens. right near the Gleneagles golf course in Perthshire County. His residence at 18-19 Kensington Palace Gardens which was purchased from Formula One boss Bernie Ecclestone in 2004 for £57 million (US$128 million). Mittal has knocked down a £4 million property to build his new home. India. and rebuilt it as a house. London. The extravagant show of wealth has been referred to as the "Taj Mittal". Mittal owns three prime properties collectively worth £500 million on the "Billionaire's Row" at Kensington Palace Gardens. the most exclusive street in the city occupied by embassies and millionaires. registered in the Dutch Antilles and maintaining less than 1% of its 100. London is decorated with marble taken from the same quarry that supplied the Taj Mahal. also known as 'Garbagegate' or Cash for Influence. The clean up was expected to cost €70m. making it the world's most expensive house at the time. making Mittal the single largest shareholder.[20] The letter from Blair to the Romanian government.

an arboretum and croquet lawn. outdoor and indoor swimming pools. sculpture garden. 2004 8th honorary Willy Korf Steel Vision Award American Metal Market and World Steel Dynamics. The wooden flooring and tiles have been flown in from Germany and a super luxe bathroom is estimated to be worth £80. The house will be built on a stone plinth. [edit]Awards and Honours Year of Award or Honor Name of Award or Honor Awarding Organization 2010 "Dostyk" 1 Republic of Kazakhstan. 2007 Padma Vibhushan President of India. a fitness centre. tennis courts. 2007 Dwight D. The wallpaper and furniture are from Ralph Lauren’s home collection. 2007 Grand Cross of Civil Merit Government of Spain. 2007 Fellowship King's College London.000.luxury villa has six bedrooms and two kitchens. 1996 Steel Maker of the Year New Steel. which will provide various terraces on which to enjoy the cocktail hour. 2004 Entrepreneur of the Year Wall Street Journal. 2008 Forbes Lifetime Achievement Award Forbes.[30] Aditya Mittal From Wikipedia. It will have at least 10 bedrooms.  [edit] 2007: He was the commencement speaker of class of 2007's MBA commencement at the Wharton School of the University of Pennsylvania. an under-ground art gallery.25 million ands is planning to spend £25 million on it to make it 100 per cent self-sufficient and eco-friendly. The unique modern design will not only ensure the house is zero-carbon. Eisenhower Global Leadership Award Business Council for International Understanding. Mittal is now planning to build a "Zero Carbon" Footprint estate in Surrey a 340 acre estate also called Alderbrook Park which was built as a country estate during the 19th century but was part-demolished in the 1950s and replaced with a less-attractive home. He purchased the estate for £5. but will make the entire 340-acre estate carbon negative. the free encyclopedia . 2004 European Businessman of the Year Forbes.

[3] the largest private contribution the hospital had ever received. he was ranked 4th in the '40 under 40' [2] list of Fortune magazine. a Board Member at the Wharton School. Investor Relations. Aditya and Megha Mittal made a donation of £15m to the Great Ormond Street Hospital in London. a Board Member at Bennett. The two companies were merged in 2006 and the new merged company is called ArcelorMittal. Coleman & Co. a Board Member at PPR and a member of Citigroup's International Advisory Board.[4] [edit] . Mergers and Acquisitions (M&A). Aditya Mittal is married to Megha Mittal. who is married to Amit Bhatia and is a board member of ArcelorMittal. including the NSPCC in the United Kingdom. The donation was used to help fund their new facility. He has one sister.Aditya Mittal is a CFO. Strategy and Communications of the world's largest steel firm ArcelorMittal. from which he graduated magna cum laude in 1996. He led Mittal Steel's offer for Arcelor that led to its acquisition and merger with Mittal Steel in 2006. who was ranked the fifth richest person in the world by Forbes in 2010. Contents [hide] • • • • 1 Charity 2 References 3 Further reading 4 External links [edit]Charity He is involved with various charitable organisations.[1] In 2009. and has been involved in several purchases since then as Mittal Steel has played a major role in the consolidation of the global steel industry. Vanisha. the Mittal Children’s Medical Centre. owner of German fashion company Escada. He joined the family business in 1997 and was appointed Head of Mergers and Acquisitions in 1999. He lives in London. He worked for a short time in the mergers and acquisitions department at investment bank Credit Suisse First Boston. which is controlled by his father Lakshmi Mittal. He is a member of the World Economic Forum's Young Global Leaders Forum. Responsible for Flat Americas. He has a Bachelor's Degree in Economics with concentrations in Strategic Management and Corporate Finance from the Wharton School of the University of Pennsylvania in the United States. the Young President's Organization.. In 2008.