Anda di halaman 1dari 18

Report On Arcelor- Mittal Merger

“A Union of Titans”

Submitted By:
Divya khemani

Mittal Steel is the world's largest and most global steel company, with shipments of 49.2
million tons and revenues of over $28.1 billion in 2005. They own steel-making facilities
in 16 countries, spanning four continents. They employ 224,000 people spanning 49
different nationalities. Their shares are listed on the New York and Amsterdam stock

Mittal Steel has set the pace for the consolidation and globalization of the world steel
industry. They have taken on a range of acquisitions, many of them formerly public
sector-owned companies, and made successes of them. In the process they have spread
best practice and modern production techniques throughout their plants. Their capital
investment programme is unmatched in the industry.

Their 5000 strong customer base, spanning 150 countries, includes household names in
the automotive, engineering and appliance sectors. A force in every segment of the steel
market, Mittal Steel produces a broad range of high-quality finished and semi-finished
products for the flat and long products markets.

Mittal Steel is among the most efficient steel producers in the world. They encompass all
aspects of modern steelmaking, combining both integrated and mini-mill facilities and
producing much of the iron ore and coking coal used in their furnaces. They are also
among the most advanced steel makers, operating a range of modern technologies. They
have pioneered the use of direct reduced iron (DRI) as a raw material source and are now
the world’s biggest producer of DRI. With two technical research facilities, their product
development teams are ready to meet the needs of the most demanding customers.

Lakshmi N. Mittal Chairman of the Board of Directors and Chief Executive
Aditya Mittal Member of the Board of Directors and President and Chief
Financial Officer
Wilbur L. Ross Member of the Board of Directors
Narayanan Vaghul Member of the Board of Directors
Ambassador Andrés Member of the Board of Directors
René Lopez Member of the Board of Directors
Muni Krishna T. Reddy Member of the Board of Directors
Lewis B. Kaden Member of the Board of Directors
Vanisha Mittal Bhatia Member of the Board of Directors
Mr. Lakshmi N. Mittal is the Chairman and CEO of Mittal Steel Company. He founded
the company in 1976 and has been responsible for the strategic direction and development
of its businesses. Mittal Steel is the only truly global steel producer in the world with
operations on 14 countries, spanning 4 continents. Mr. Mittal’s ability to guide the
company in its identification, acquisition and turnaround of steel assets has led to its
emergence as one of the world’s fastest growing steel producers. Mr. Mittal began his
career working in the family’s steelmaking business in India, and has over 30 years of
experience working in steel and related industries. Over the years, Mr. Mittal has also
championed 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. Other related activities of Mittal Steel include shipping, power
generation and distribution, and mining.

Following the transaction combining Ispat International and LNM Holdings to form
Mittal Steel in December 2004, together with the simultaneous announcement of the
acquisition of International Steel Group in the US to form the world’s largest steel
producer, Mr. Mittal was awarded Fortune magazines “European Businessman of the
Year 2004”. Previously, he was awarded “Steelmaker of the Year” in 1996 by New Steel
in the USA, and the “Willy Korf Steel Vision Award” in June 1998, for outstanding
vision, entrepreneurship, leadership and success in global steel development from
American Metal Market and PaineWeber’s World Steel Dynamics.

Mr. Mittal is an active philanthropist and a member of various trusts. Mittal Steel is a
significant contributor to local community and welfare activities for employees in
countries where the Group operates. Mr. Mittal is a member of the Foreign Investment
Council in Kazakhstan, the International Investment Council in South Africa, the World
Economic Forum’s International Business Council and the International Iron and Steel
Institute’s Executive Committee. He is a Director of ICICI Bank Limited and is on the
Advisory Board of the Kellogg School of Management in the U.S.. He was born in
Sadulpur in Rajasthan, India on June 15, 1950, and graduated from St. Xavier’s College
in Calcutta where he received a Bachelor of Commerce degree. He is married to Usha
Mittal, and has a son, Aditya Mittal and a daughter, Vanisha Mittal.


Year Acquired Description

1989 Iron & Steel A modern technologically advanced Steel Complex.

Company Of Renamed as Caribbean Ispat.
Trinidad & Tobago
1992 Sibalsa Mexico’s Third Largest Steel Producer. Renamed as Ispat
1994 Sidbec-Dosco Canada’s number four steel maker is bought from the
Government of Quebec and renamed Ispat Sidbec.

1995 Hamburger Stalwerke Germany’s fourth largest producer of wire rod, renowned
for its mini-mill expertise and renamed as Ispat
Hamburger Stahlwerke.

Karmet The Group buys a 5.5 million tons pa blast furnace steel
plant in Kazakhstan, renamed Ispat Karmet.

1998 Inland Steel Ispat International buys America’s fourth largest

Company steelmaker, Inland Steel Company and renames it Ispat

1999 Unimétal Ispat International buys the French company, Unimetal

Group, including Trefileurope and SMR, from Usinor.

2001 ALFASID LNM Holdings buys 70 per cent of ALFASID from the
Algerian government and renames it Ispat Annaba.

SIDEX LNM Holdings acquires SIDEX, an integrated steelworks

in Galati, being privatized by the Romanian government.
Renames it Ispat Sidex.
2002 Business assistance LNM Holdings signs a business assistance agreement with
agreement signed the South African steel producer, Iscor. LNM
with Iscor subsequently takes control of Iscor in June 2004. Ispat
Iscor has now been renamed Mittal Steel South Africa.

2003 Nova Hut LNM Holdings signs an agreement to buy Nova Hut, the
largest steel producer in the Czech Republic, from the
Czech government. The acquisition, at an all-in cost of
$905 million, takes effect in January 2003 and the
company is renamed Ispat Nova Hut.
2004 Polski Huty Stali LNM Holdings buys a controlling holding in Poland’s
leading steel producer, Polskie Huty Stali, and renames it
Ispat Polska Stal (IPS). The company boasts a capacity of
over 6.5 million tons a year but is close to bankruptcy at
the time of acquisition.

BH Steel LNM Holdings buys Bosnia’s BH Steel, committing itself

to the biggest ever investment in Bosnia by a foreign

Macedonian facilities LNM adds to its downstream activities in the Balkans with
from Balkan Steel the acquisition of hot and cold rolling mills in Skopje,
Macedonia. The two mills, dormant for two years, are
renamed Ispat Skopje.

Creation Of Mittal LNM Holdings and Ispat International announce their

Steel and Proposed merger - to form Mittal Steel. At the same time, Mittal
Acquisition Of Steel announces an agreed takeover of International Steel
International Steel. Group of the US in a cash and shares deal worth $4.5
billion. Once the proposed acquisition is completed, it will
create the world’s largest steel maker with a stock market
worth of around $21 billion and a combined capacity of 70
million tons of steel a year. The enlarged Mittal Steel will
span the globe with around 30 per cent of its assets in
North America, 30 per cent in Europe and the remaining
40 per cent split between Asia and Africa. Chairman
Lakshmi Mittal declares his intention to make the Group
‘the lowest cost steel producer in every market.’

2005 Acquisition of stake Mittal Steel announces a share purchase agreement to

in Hunan Valin acquire 36.67 per cent of Hunan Valin Steel Tube & Wire,
one of China’s top ten steelmakers with annual capacity of
8.5 million tonnes. The move marks Mittal Steel’s entry
into the Chinese steel industry.

ISG Acquisition The acquisition of ISG is completed and the company is

Completed merged with Mittal Steel’s existing US operation, Ispat
Inland, and subsequently re-named Mittal Steel USA.

Mittal Steel Europe Mittal Steel restructures its European business, merging its
Created western European operations with its central and eastern
European operations to form one unified business structure
– Mittal Steel Europe.

MDA with Liberian Mittal Steel signs a mining development agreement with
Govt. the Government of Liberia, giving Mittal Steel access to
about one billion tonnes of iron ore resources in the west
of the country.

Acquisition of Kryvorizhstal is acquired for $4.8 billion following a

Kryvorizhstal public auction in Kiev. Kryvorizhstal is Ukraine’s leading
steelmaker with annual steel production of 7.7 million
tonnes and more than one billion tonnes of iron ore
resources. Company subsequently renamed Mittal Steel
Kryviy Rih.

MOU with Mittal Steel signs a Memorandum of Understanding with

Jharkhand, India the State of Jharkhand, India. Mittal Steel expects to invest
$9 billion establishing mining and steel making operations
in the state.

Acquisition of Stelco Mittal Canada enters into definitive agreement for the
subsidiaries acquisition of Norambar Inc., Stelfil Ltée and Stelwire
Ltd. from Stelco Inc. Transaction completed in February
2006 at a cost of C$30 million

Arcelor was created by the merger of Aceralia, Arbed and Usinor, and the determination
of these three European groups to mobilise their technical, industrial, and commercial
synergies in a joint venture to create a global leader with the ambition of becoming a
major player in the steel industry.
Officially launched on February 19, 2001, the merger became effective on February 18,
2002, when the Arcelor share was listed on several stock exchanges. The choice of the
name Arcelor was announced on December 12, 2001.

1902 : Creation of AHV
1950 : Creation of ENSIDESA
1973 : ENSIDESA (absorption of UNINSA)
1991 : Establishment of CORPORACION de la SIDERURGIA INTEGRAL
1994 : Establishment of CSI Corporacion Siderurgica, by utilizing the profitable assets of
Corporacion de la Siderurgia Integral. Operations begin in 1995.
1997 : Creation of ACERALIA CORPORACION SIDERURGICA and strategic alliance
with the Arbed Group.
1882 : Establishment of the parent company
1886 : Beginning of Thomas steel production in Luxembourg
1911 : Merger of the 3 largest steelmakers in Luxembourg and creation of Arbed
1920 : Creation of TradeARBED
1922 : Creation of Cia Siderurgica Belgo-Mineira in Brazil
1962 : Creation of SIDMAR in Belgium
1985 : Majority shareholding in ALZ through SIDMAR
1992 : Control is taken of the former Maxhütte (ex-GDR) and establishment of Stahlwerk
1993 : Organization of the Group in business sectors
1993/97 : Conversion to electric steel production in Luxembourg
1995 : Majority shareholding in Klöckner Stahl, now STAHLwerke BREMEN
1997 : Strategic partnership with ACERALIA (formerly CSI) in Spain
1998 : Integration of ARISTRAIN in Spain - Majority shareholding in Belgo-Mineira

1999 : Takeover of UCIN in Spain

2000 : Sale of the shareholding in Samitri

1948: Creation of Usinor, which takes over from Forges et Aciéries du Nord et de l'Est
and Hauts Fourneaux, Forges et Aciéries de Denain-Anzin
1948 : Creation of Sollac, which takes over from the Lorraine steel industry
1964 : Creation of Sacilor, the origin of which dates back to the Wendel group
1981 : Nationalization of Usinor and Sacilor
1986 : Merger of Usinor and Sacilor
1990 : Sollac absorbed by Usinor
1991 : Ugine absorbed by Sacilor
1994 : Special steels grouped together within the Aster holding company
1995 : Privatization of Usinor-Sacilor
1997 : Usinor-Sacilor becomes Usinor
1998 : Acquisition of Cockerill-Sambre, owner of EKO Stahl
1999 : Re-organization of the Usinor group
Joseph Kinsch Chairman of the Board of Directors
José Ramón Álvarez Rendueles Vice-Chairman of the Board of
H.R.H. Prince Guillaume of Luxembourg Director
John Castegnaro Director
Jean-Yves Durance Director
Noël Forgeard Director
Jean-Pierre Hansen Director
Ulrich Hartmann Director
Corporación JMAC BV represented by Antoine Director
Hedwig De Koker Director
Manuel Fernández López Director
Michel Marti Director
Daniel Melin Director
Edmond Pachura Director
Francisco Javier de la Riva Garriga Director
Sergio Silva de Freitas Director
Georges Schmit Director
Fernand Wagner Director


January 14: LN Mittal talked to Arcelor CEO Guy Dolle about the possibility of Mittal
Steel acquiring Arcelor. Guy Dolle categorically turns Mittal down.

January 27: Mittal Steel launches a formal takeover bid for $22 billion dollars.

January 29: Arcelor rejected the offer and the French government said it has "great
concerns" about the merger. Arcelor has plants in France.

The market sent Arcelor's Paris-listed shares soaring 29%, to EURO 28.6. Mittal shares
listed in Amsterdam closed up 6.2%, at EURO 27.63. Steel shares around the world also

Mittal said that Arcelor Chief Executive Guy Dolle wasn't positive about the approach,
but he was confident Arcelor's shareholders will back the bid.
A tie-up between the two companies would create a company with $70 billion a year in
revenue and the most global production capacity in the industry. Arcelor is primarily a
European producer while Mittal is scattered around the globe.

The next largest producers after Mittal and Arcelor are Nippon Steel Corp and Posco.

Mittal would become the leader in providing steel to the automotive industry in Europe
and the U.S., and would lead in the North American Free Trade Area in appliances and


There was a lot of hostility by Arcelor’s Management Board as they felt that Mittal Steel
was resorting to underhanded techniques to merge with them. They dismissed the idea of
a merger with a "company of Indians".

The European Union said it was against racial discrimination and the issue would be
treated only on commercial considerations.

There was a lot of controversy where racist remarks were made against LN Mittal.

The bid stirred up passions amongst politicians, other leaders, and common man. With
the European Commission being accused of protectionism and racism, Arcelor's CEO,
Guy Dolle, offered a laundry list of ills in Mittal Steel because of which the merger
should not take place.

In London, a columnist for The Guardian spoke of how the bid unleashed a new wave of
'economic patriotism,' adding that Mittal and his family were often portrayed as aliens --
'the Indians' -- rather than as global entrepreneurs.


April 19: Mittal Chairman and Chief Executive Lakshmi Mittal calls Arcelor Chairman
Joseph Kinsch to ask for "friendly discussions'' about revising his proposal in return for
support from management.

April 28: Mittal tells Kinsch he is ready to make "significant corporate governance
changes'' and revise the offer.

May 4: Kinsch says the offer is "wholly inadequate'' and Arcelor has significant concerns
about the real value of Mittal shares.
May 9: Mittal Steel says it is ready to revise the offer and make corporate governance
changes "in the event of a recommended deal.''

May 10: Arcelor Chief Executive Guy Dolle describes as "insufficient'', Mittal's offer to
revise its bid.

May 11: Arcelor says it has filed a lawsuit in the United States against Mittal for copying
a type of steel for the auto industry.

May 12: Both companies announce better-than-expected results, although profits suffer
due to higher costs of raw materials. Arcelor toughens its stance, announcing plan to
spend up to $9.5 billion to buy back almost a quarter of its shares.

May 18: Mittal formally launches its offer.

May 19: Mittal raises its offer by 34 percent, bringing it up to $32.90 billion and says it
would reduce the Mittal family's stake in the company.


Severstal is a Russian company mainly operating in the steel industry, centered in the
northern city of Cherepovets. As such it is the second largest steel company in Russia,
behind Evraz Group. The company is owned by Alexei Mordashov.

May 26: Arcelor announces a deal with Severstal that will give it a controlling stake in
Russia's steelmaker and $16.4 billion for 32 percent of Arcelor.

June 2: European Union antitrust regulators approve Mittal bid on condition the new
combined steel giant sell off some of its facilities if the bid succeeds.

June 6: The European Commission approved the Mittal-Arcelor merger.

June 9: Arcelor confirms it has held talks with Mittal on the term of its bid.

June 12: Arcelor rejects Mittal revised bid and recommends shareholders accept deal
with Severstal. Arcelor says the revised offer still undervalues the company and urges
shareholders to support the Severstal merger instead, but mandates its board to explore
possible improvements to the Mittal offer at a later date. Mittal says it won't budge on
price, but is prepared to make changes related to corporate governance.

June 20: In a bid to woo Arcelor, Severstal revised the terms of its merger proposal,
saying that majority owner Mr Alexei Mordashov would settle for 25 per cent of the new
group rather than the initially proposed 32.3 per cent and raised its offer by about 2
June 19: Arcelor cancels shareholder meeting on share buyback amid growing
shareholder opposition.

June 21: Market regulators in France, Spain, Luxembourg and Belgium suspend Arcelor
shares, saying they want more clarity on the state of talks with Mittal and Severstal.

June 24: Talks on between Mittal Steel and Arcelor

June 25: Arcelor's board agrees to sweetened bid from Mittal worth about $32.3 billion.

June 30: Paving the way for a merger between Arcelor and Mittal Steel, an
overwhelming majority of shareholders of the Luxembourg-based firm vote down a
merger proposal from Russia's Severstal.

57.95% per cent of Arcelor shareholders voted against the Severstal offer.

In the process, they accept Mittal Steel's $32.3 billion offer, which was approved by the
Board of Arcelor on June 25 after a five-month long battle.

Arcelor had recommended acceptance of share and cash from Mittal Steel valuing at
about $32.3 billion, which creates a group with 3,20,000 employees producing about 116
million tonnes of steel annually, accounting for about 10% of the world market.

Arcelor chairman Joseph Kinsch told shareholders that the long fight with Mittal was
worth it, saying the India-born steel tycoon L N Mittal and the markets had finally
recognised Arcelor's "true value."

"We have created in five months more than EURO 12 billion in value," Kinsch said.


• Arcelor Mittal: A merger of equals with shared management for
successful integration
– Ownership of 50.5% for Arcelor investors and 49.5% for Mittal
Steel investors

• Recommended transformational merger of the world’s two largest steel

companies with unrivalled global footprint
• The undisputed industry leader

• Creation of company with unprecedented scale and diversification to

manage cyclicality, stabilize earnings and increase shareholder returns

• Annual synergies increased by 60% to €1.3bn (US$1.6bn)


• Combination driven by simple and compelling industrial logic, spurring
consolidation in a fragmented industry
• Creation of European-based global champion best positioned to
capture new market opportunities
• New entity will capitalise on strong European heritage and presence, as
well as leading position in North America
• Enjoy unparalleled access to new high-growth markets: Central and
Eastern Europe, Africa, China and Latin America
• Company will be able to service global customers with broad and deep
product offering
• High level of direct access to raw materials making group more
profitable and less cyclical than most of its peers


• Consolidate regional high-end leadership into global customer platform
• Achieve industrial excellence through state of the art assets sustained by sound
capital expenditure and best in class R&D
• Realise commercial leadership through strong distribution channels
• Capture growth in BRICET countries, utilising existing leadership in high-end
products in mature economies
• Accelerate growth in key emerging markets such as India and China
• Achieve cost leadership and operational excellence across product range
• Maintain high level of vertical integration to hedge against raw materials price
• Focus on people management and social responsibility
From Mittal Point Of View

• Merger would take consolidation to a new horizon.

• Successful distribution business in Europe.
• Mittal Co. to have 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

From Arcelor Point Of View

• Mittal Company will accomplish Arcelor’s stated plan in the most efficient
• Arcelor becomes a global player.
• 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
• Access to very low cost slab potential in Ukraine to serve West Europe.
• Access to raw materials and upstream integration.


• 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

o Mr Kinsch to be Chairman, Mr Mittal to be President
o Upon Mr Kinsch’s retirement, Mr Mittal becomes Chairman
o 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
o After expiry of three year period, shareholders to elect Board of Directors

• Board Committees
o an Audit Committee composed solely of independent directors
o an Appointments and Remuneration Committee composed of 4 members,
including the Chairman, President and 2 independent directors

• Composition of Management Board

o The Management Board will be comprised of 7 executive members
o 4 current Arcelor executives, CEO to be proposed by the Chairman
o 3 Mittal Steel executives


• Other offers
Arcelor has agreed they will accept no other offer for Arcelor shares unless it is a
superior offer for the entire share capital of Arcelor
o No break-up fee required in contract
o If shares are issued under the Strategic Alliance Agreement, corporate
governance rules and certain other conditions terminate

• Standstill
Mittal family has 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 has 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


Marketing and trading (US$570m)

• Accelerated growth of distribution in developing regions e.g., CEE, CIS, Africa

• Cross selling through enlarged and enhanced product portfolio
• Optimisation of order book for cross product flows and logistical savings

Manufacturing and process optimization (US$470m)

• Benchmarking and best practice alignment across all operating assets

• Optimisation of utilisation of assets through selected mill product specialisation
(e.g., productivity gains with better sequencing rates, fewer changeovers)
• Logistical and mill optimisation through transfers of semi finished products
Purchasing (US$500m)

• Scale effects on standardisation of procurement contracts

• Optimisation and efficiencies from maintenance services, subcontracting, spare
parts and consumables
• Logistics savings on optimisation of raw material flows

SGA (US$60m)

• IT synergies
• Reduction in external contracts e.g., consulting services
• Duplication in commercial network avoided


Arcelor Mittal pro-forma key financials Arcelor Mittal (US$bn)

Revenue 2005 US$77.4bn

EBITDA 2005 US$14.4bn
Margin (%) 18.6%
Net Debt Q1-06 * US$24.0bn
Gearing 56%
Net Debt / EBITDA 1.7x
Cash flow from operations 2005 US$9.7bn
Capex 2005 US$4.1bn
Free cash flow 2005 US$5.6bn


• Efficient capital structure and return of excess cash to shareholders
• 30% dividend payout ratio over the cycle
• Unparalleled financial flexibility to pursue internal and external growth
• Commitment to investment grade credit rating
• Maintain high returns on capital
The largest steel company in the world is created, a company larger than the next 3
largest steel companies combined. According to the press releases issued by the
companies, “Consolidation creates value in the steel industry”.

Arcelor is the number 1 steel producer in the world by revenue.

Mittal is the number 1 steel producer in the world by shipments.

• Both companies have been leaders in steel industry consolidation

• Consolidation is contributing to increased discipline by producers
• Combination of top two players takes consolidation to a new level

Arcelor is primarily a European player, while Mittal has interests all around the world.
Together, they form

• World’s number 1 steel company

• Leading positions in 5 major markets
• 61 plants
• 27 countries
• Numerous international partnerships and Joint Ventures
• Opportunity to grow in China and India

The new company is number 1 in North America, South America, Africa, Western
Europe, Eastern Europe and CIS countries.
A very vital omission from this list is Asia and more importantly, LN Mittal’s home
country, India.

Why has LN Mittal not concentrated on India so far? One can speculate that he was going
at it step by step, conquering the world markets one by one and now, only India is left.
Till now, he has shown virtually no interest in the Indian market.

Recently, he has shown interest in investing large amounts of money in Jharkhand and
Orissa, amounting to about Rs. 40,000 crore.
Logically his next stop would be Asia, as China and India are the fastest growing steel
consumption markets. In 2005, the US witnessed a 15.4% fall in consumption, and the
fall in EU was 11.7%. Total global consumption still managed to rise 5.3%, thanks to a
massive 25.9% rise in demand in China and an impressive 7-8% demand in India.

Some analysts say that Mittal had to pay a much higher price than was actually required
to merge with Arcelor. He also did not get the best deal that he could have, as his
controlling stake in the newly formed Arcelor-Mittal is lower than what was originally
aimed for.

Mittal Steel is the world's largest steel producer at 70 million tonnes a year, almost double
the world's second largest producer - Arcelor. October 2005 saw the first battle between
the big two- Mittal and Arcelor, both bid for Ukraine's largest steel mill - Kryvorizhstal in
an open televised bid. Mittal beat Arcelor to the $4.8 billion deal, much more than the $3
billion at what analysts had valued Kryvorizhstal.

Reports suggest that it was this bidding war with Arcelor that gave L N Mittal's son
Aditya, the CFO of Mittal Steel, the idea of taking over Arcelor. His reason was that it
would eliminate any future messy battles.

Why was the deal so important for LN Mittal? In a snapshot, the Mittal-Arcelor combine
would have an even larger share of the global steel market and would be able to get a
better grip over steel pricing.

Severstal had to be paid legal fees as they had been completely cut out of the deal. Now
Severstal has threatened a legal battle and a fresh bid. If that happens, the immediate
future, at least, will not be glinting enough to Mittal’s advantage.

It has been a win-win transaction for both parties.

• Creating the undisputed leading global steel company

• Growth and value creation opportunities maximised through unique
global platform
• Step change in steel industry consolidation
• Significant synergy potential
• Financial strength and strategic flexibility reinforced
• Leadership in R&D/product development
• Significant free float and liquidity
• Re-rating potential
• Positive for all stakeholders

In the end, a European company had to finally give in and merge with “a company of

Outlook Magazine – 10th July 2006 – Pages 46-48