Arcelor - Mittal Merger

SMBA-08
Aarti, Nitin, Sushant, Lokesh, Silveia,
Archana
Table of Contents
Mittal Steel – Background- Aarti
Arcelor - Background - Aarti
Identified synergies - Nitin
Events - Sushant
Snapshot View of the Merger - Archana
Market view – Lokesh
Conclusion & post merger scenario - Silveia
Mittal Steel - Background
Ispat International and LNM Holdings to form Mittal
Steel in December 2004
World's largest and most global steel company
Shipments of 49.2 million tons and revenues of over
$28.1 billion in 2005
5000 strong customer base
Automotive, Engineering and Appliance sectors
Produces a broad range of high-quality finished and
semi-finished products
World’s biggest producer of DRI
Arcelor - Background
Created by the merger of Aceralia, Arbed and Usinor
A global leader
Arcelor is the number 1 steel producer in the world by
revenue.
Officially launched on February 19, 2001, the merger
became effective on February 18, 2002
Events
The Initial Bid and the Rejection
Hostility and Racism
Increasing Offers and Pressure
Severstal – A New Player
Agreement to Merger and Final Merger
Snapshot View of the Merger
Transaction highlights
The Combined Vision
The Combined Strategy
A Win-win transaction for all stakeholders
Finer Details of Merger
Key Contract Terms
Identified synergies
Marketing and trading (US$570m)
Manufacturing and process optimization (US$470m)
Purchasing (US$500m)
SGA (US$60m)
Financial policy for sustainable shareholder value
creation
Conclusion
Creating the undisputed leading global steel company
Growth and value creation opportunities maximized
through unique global platform
Positive for all stakeholders
Leadership in R&D/product development
Financial strength and strategic flexibility reinforced
References
http://www.mittalsteel.com/Company/History/ 

http://www.mittalsteel.com/Company/Profile.htm 

http://www.mittalsteel.com/Company/Management/ 

http://www.mittalsteel.com/News+and+Press/Press+Conferences+and+Presentat

ions.htm 
http://www.arcelor.com/index.php?lang=en&page=77 

http://sg.biz.yahoo.com/060127/15/3y9b5.html  

http://economictimes.indiatimes.com/articleshow/1685717.cms 

http://in.rediff.com/money/2006/feb/15msg1.htm 

http://www.blonnet.com/2006/06/26/stories/2006062603330100.htm 

http://www.stainless-steel-world.net/misc/ShowPage.aspx?pageID=664 

http://in.rediff.com/money/2006/jun/30mittal.htm 

http://in.rediff.com/money/2006/mar/08bspec.htm 

Outlook Magazine – 10th July 2006 – Pages 46-48

Thank You