08-02-2013, 11:53 AM
MERGER OF ARCELOR STEEL AND MITTAL STEEL
MERGER OF ARCELOR.ppt (Size: 1.03 MB / Downloads: 32)
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004.
Employing 310,000 employees in over 60 countries, it is a major player in all its main markets: automotive, construction, metal processing, primary transformation, household appliances, and packaging, as well as general industry.
With total sales of over €30 billion, Arcelor was the world's largest steel manufacturer in terms of turnover.
It produces long steel products, flat steel products and inox-steel.
INTRODUCTION
Mittal Steel Company was formed by the merger of
LNM holdings & ISPAT International
International Steel Group Inc.
CEO Lakshmi Mittal’s family owned 88% of the company and its headquarter was in Rotterdam, Netherlands
The company was the world’s largest steel producer by volume and also the largest in turnover and is now a part of ArcelorMittal
It was the major player in Steel, Flat Steel products, Coated Steel, Tubes and Pipes
ARCELOR MITTAL
Arcelor Mittal is now the largest steel company in the world
ArcelorMittal is the leader in major global markets, including automotive, construction, household appliances & packaging
The company is headquartered in southern Luxembourg City, the former seat of Arcelor
Lakshmi Mittal (owner of Mittal Steel), a non-resident Indian is the Chairman and CEO
BRAND AND PHILOSOPHY
ArcelorMittal's brand promise is 'transforming tomorrow', underpinned by a consistent set of values:
Sustainability
Quality
Leadership
Company’s goal is to provide the leadership that will transform tomorrow's steel industry
THE BIG DEAL
In January 2006, Mittal Steel launched a $22.7 billion offer to Arcelor’s shareholders
The deal was split between Mittal Shares (75 percent) and cash (25 percent)
Under the offer, Arcelor shareholders would have received 4 Mittal Steel shares and 35 euros for every 5 Arcelor shares they held
FINANCIAL ASPECTS
Increase in revenue of the company from $28.123 billion to $105.2 billion and operating income from $4.746 billion to $14.83 billion
The current swap ratio is 1:1
Venture into new businesses and market like Luxembourg, Senegal, Liberia and looking to develop positions in the high-growth Chinese and Indian markets
Profit of the company has risen from $3.36 billion to $10.36 billion
Decreased competition and increased market share
Enlarged brand portfolio
Increase in economies of scale and share value.
High monetary cost of the target company (Arcelor) which is $32.9 billion