http://finance.mapsofworld.com/merger-acquisition/india.

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OBJECTIVES OF THE STUDY

 Gain an in-depth knowledge about various corporate valuation techniques.  Critically examine the rationale behind the major merger and acquisitions.  Understand the advantages and disadvantages of cross-border acquisitions.  Understand the need for growth through acquisitions in foreign countries.  Study the regulations governing mergers & acquisitions in the case of a cross-border acquisition.  Get insights into the consolidation trends in the Indian and global steel industries.  To analyze the competitive structure of the steel industry.

METHODOLOGY
Study of secondary sources of information
The reason for selecting this mode of research for this type is that its a probably quickest and most economical way for research to find possible hypothesis and to take advantage of the work of to others and utilize their own earlier efforts. Most large companies that have maintained marketing research programs over a number of years have accumulated significant libraries of research organizations furnishing continuing data.

Procedure
 As it is a secondary research, all the data is selected after rigorous analysis of articles from newspapers, magazines and internet.

 All the research collected is done by professional analyst across the world and is compiled in this project to understand the financial and business impact of merger and acquisition more effectively.

DATA
Literature Review: The Steel Industry
THE GLOBAL STEEL INDUSTRY The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. China remained the worlds largest crude steel producer in 2011 (695.5 mt) followed by Japan (107.6 mt) and the USA (86.2 mt). India occupied the 4th position (72.2 mt) for the second consecutive year. The WSA has projected that apparent steel use will increase by 6.5% to 1,398 mt in 2011, following growth of 15.1% in 2010. In 2012, it has projected that the same will grow further by 5.4%. Such growth will be largely driven by China and India with Chinas apparent steel use in 2011 and 2012 expected to increase by 7.5% and 6% respectively. For India, growth in apparent steel use is expected to be subdued at 4.3% in 2011 but expected to go up by 7.9% in 2012.

INDIAN SCENARIO At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12th Plan has projected that the crude steel steel capacity in the county is likely to be 140 mt by 2016-17. Further, based on the status of MOUs signed by the private producers with the various State Governments, it is expected that Indias steel capacity would exceed 200 mt by 2020. The country is expected to become the 2 nd largest producer of crude steel in the world by 2015-16, provided all requirements for creation of fresh capacity are adequately met.

FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY y y Energy supply - Power shortages hamper production at many locations Problems procuring raw material inputs - Since domestic raw material sources are insufficient to supply the Indian steel industry, a considerable amount of raw materials has to be imported. For this reason hard coal imports have increased in the last five years by a total of 40% to nearly 30 million tons. y Inefficient transport system - In India, insufficient freight capacity and a transport infrastructure that has long been inadequate are becoming increasingly serious impediments to economic development.

Global steel ranking Company Capacity (in million tonnes)

Arcelor - Mittal Nippon Steel Posco JEF Steel Tata Steel - Corus Bao Steel China US Steel Nucor Riva Thyssen Krupp

110.0 32.0 30.5 30.0 27.7 23.0 19.0 18.5 17.5 16.5

COMPETITION ANALYSIS OF STEEL INDUSTRY y y Concentration Ratio Herfindahl Index

*NOTE: here we will find out above mention ratio and index and some other tools to analyze competitive structure on the basis of our research.