Why did the merger of Arcelor and Mittal make sense?

Steel companies consume a great deal of cash, and it was suggested that Mittal wanted Arcelor for its stronger cash flow (because it was better invested, hence over the cycle would at some stage be throwing off a lot). Demography For this end markets are a proxy.

Was ArcelorMittal merger successful?

Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy with a number of significant acquisitions. The world’s largest steelmaker was created through the merger of Arcelor and Mittal Steel in 2006.

Is ArcelorMittal a merger or acquisition?

In January 2006, Lakshmi Mittal the chairman of Mittal Steel announced a hostile bid for Arcelor. After an intense struggle, the two companies merged to become the world’s largest steel which controlled 10% of the global steel business. The deal was valued at $38.3 billion.

How did Mittal acquire Arcelor?

Lakshmi Mittal, CEO of Mittal Steel, a UK-based company with Indian roots, took advantage of a weakened Arcelor that had successfully won a bidding war for Canadian steel company Dofasco, with an unsolicited bid to buy the company.

How did Mittal take over Arcelor?

Belatedly it began talking about value. Mittal raised his bid once again and took it to 40 per cent over the original offer price and a premium of 80 per cent on the pre-offer price of Arcelor shares. “We are happy and proud that an Indian born entrepreneur is the world’s biggest steelmaker.”

What effect did the Arcelor Mittal merger have on the global steel industry?

The most definitive benefit that has been derived from this merger is the increment in the value of the steel assets worldwide and AreclorMittal has emerged as one supergiant with almost no competition from others for many years to come (SteelConsult International, 2007).

When did ArcelorMittal acquire Essar Steel?

ArcelorMittal and Nippon Steel’s joint venture, AM/NS India​, won​ the Deal of the Year Award from the S&P Platts 2020 Global Metals Awards for completing the $5.7 billion acquisition of Essar Steel India Limited last year, a fully integrated steel producer in India that entered insolvency in 2017.

When did Mittal acquire Arcelor?

ArcelorMittal was created by the takeover of Western European steel maker Arcelor (Spain, France, and Luxembourg) by Indian-owned multinational steel maker Mittal Steel in 2006, at a cost of €40.37 per share, approximately $33 billion total.

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