lakshmi mittal final
TRANSCRIPT
MITTAL'S MASTER STROKE: GETTING GLOBAL THROUGH ACQUISITIONS
Presented To:Ms. Deepika Arora(Faculty PCTE)
Presented By:Gagandeep SinghHarwinder SinghJasmine Attri
Lakshmi Nivas Mittal
Born : 15 June 1950 at Sadulpur, Rajasthan, India
Residence: London, United
KingdomEthnicity : Indian
Citizenship: IndiaAlma mater : St. Xavier's College,
Calcutta
Occupation : Chairman & CEO of Arcelor Mittal
Net worth : US$28.7 billion
(2010)Religion : Hinduism
Children: Vanishaa Mittal,
Aditya Mittal.
Mittal Steel Company- An introduction
One of the world's largest steel producers by volume and also one of the largest in turnover.
Mittal Steel was based in Rotterdam but managed from London by Mittal’s
Global steel company with shipments of 49.2 million tons
Own steel-making facilities in 16 nations, spanning four continents
Employing 224,000 people spanning 49 different nationalities
Cont..
Shares of this company are listed on the New York and Amsterdam stock exchanges.
They are having 5000 strong customer base, spanning 150 nations, includes household names in the automotive,
engineering and appliance sectors.
Produces a broad range of high-quality finished and semi-finished products for the flat and long products market.
Mittal Steel Growth 2005: ISG Acquisition completed > Mittal Steel Europe created >
MDA with Liberian government > Acquisition of
Kryvorizhstal(Ukraine) > MoU with State of Jharkhand, India >
Acquisition of Stelco subsidiaries
2004: Acquisition of Polski Huty Stali (Poland)>Creation of Mittal
Steel and proposed acquisition of International Steel >
2003: Acquisition of Nova Hut (Czech Republic)
Cont..
2002: Business assistance agreement signed with Iscor
2001: Acquisition of ALFASID > Acquisition of Sidex
1999: Acquisition of Unimétal
1998: Acquisition of Inland Steel Company
Cont…1995: Acquisition of Hamburger Stahlwerke > Ispat International Ltd.
and Ispat Shipping formed > Acquisition of Karmet (Kazhakastan)
1994: Acquisition of Sidbec-Dosco(Canada)
1992: Acquisition of Sibalsa
1989: Acquisition of Iron & Steel Company of Trinidad & Tobago
Corporate Strategy
Clear goals and
objectives
From an external point of
view: Value
propositions
From an internal point of
view: Continually
assesses and
analyses its business fundament
als
Vertical integration
strategy
Business Strategy
Through
Vision is expressed in 5 strategic levers.
To be the champion of customer development.
To pursue international expansion.(Siemianowice Slaskie)
To be the benchmark in the development of human resources.
To cultivate an entrepreneurial mentality
To promote operational excellence in terms of industrial performance, competition, the safety of their employees and the quality of their products and services.
Highlights of 2006
February 2006 - Expansion and strong results
Acquisition of three Stelco subsidiaries: The Norambar and Stelfil plants, located in Quebec and the Stelwire plant in Ontario.
Stelfil and Stelwire will add 250,000 tonnes of steel wire to the company's annual production capacity
Arcelor acquires a 38.41% stake in Laiwu Steel Corporation, in China
Mittal becomes Arcelormittal
• On 25 June 2006, Mittal Steel decided to merge with Arcelor, with the new company to become the largest steel producer in terms of volume. The merger has been successfully approved by shareholders and directors of Arcelor making L.N. Mittal the largest steel maker in the world.
Monthly highlights 2007
April
Finalizes the acquisition of Sicartsa, from Grupo Villacero, leading to the
creation of Mexico's largest steel producer
Entered into a 50/50 commercial joint venture with
Grupo Villacero
August
ArcelorMittal and Noble International Ltd., North America's largest producer of laser-welded
steel products, complete the transaction to combine their laser-welded tailored blanks businesses
NovemberArcelorMittal and Arcelor approve the merger of
ArcelorMittal into Arcelor, to be renamed ArcelorMittal.
Acquires a 12.6% equity stake in General Moly, Inc. for a total consideration of $70 million
Invests in Greenfield Longitudinal Submerged Arc Welded pipe mill in Nigeria with a capacity of 300,000 tonnes per
year.
ArcelorMittal and Kalagadi Manganese, a South African manganese development company, start a 50/50 joint
venture which will see the development of a manganese
November
Signs a Memorandum of Cooperation with the Republic of Mozambique, which aims to develop synergies and plan further investment in the steel
industry
Purchases a 100% stake in Galvex OÜ, the Estonian
privately owned steel galvanizing line.
December
Acquires 28% equity interest
in China Oriental Group Company Ltd.
for $644 million. And becomes the
second largest shareholder of this company
Plans to build a $380 million beam mill in
Canada with a capacity of
800,000 tonnes.
Purchases Cinter S.A., an
important stainless steel
tube producer in Uruguay
Acquires 100% of the shares of the
Austrian steel distribution
company
Signs a Greenfield
project with the administration of the Tver region
in Russia
Monthly highlights 2008
January
Acquires Unicon, the leading manufacturer of welded steel
pipes in Venezuela.
ArcelorMittal Steel Service Centre Sverige and BE Group create a
50/50 processed flat carbon steel joint venture in Sweden.
February
ArcelorMittal and the federal and regional governments of Belgium
agree on carbon dioxide ('CO2') emission allowances.
April Enters the Brazilian Steel Service Centre market with the acquisition of 50% of Gonvarri Brasil.
Acquires three coal mines and associated assets in Russia for a total consideration of $720 million.
Agrees to build a third line in its joint venture partnership with Nippon Steel
Concludes a coal off-take agreement with Coal of Africa Limited, the South African coal
development company
July
Announces a €76 million investment to expand electrical steel production
capacity at France.
Acquiring a 70% share of the Brazilian steel processor and distributor
Signs an agreement to acquire Concept Group located in Southern West Virginia,
USA.
August
Acquires the Koppers' Monessen coke plant for $170 million.
Acquires Brazilian iron ore miner London Mining South America Limited
Hunan Valin Iron & Steel Group Co. Ltd and ArcelorMittal sign a 50/50 joint
venture
September
• ArcelorMittal and Kalagadi Manganese agree a 50/50 joint venture to develop Kalagadi's South African manganese deposits
November
Acquired an additional 13.9% stake in ArcelorMittal Ostrava, increasing its stake to
approximately 96.4%.
ARCELOR MITTAL’S GROWTH CHART BY ACQUISITIONS
Growth by Acquisitions
Between 1990 and 1995, when volume output fell 0.5 per cent annually, Mittal grew 60 per cent.
Over the next half a decade, Mittal's compounded growth was at 29 per cent compared to the industry's 2.14 per cent.
Between 2000 and 2004, when the industry grew 5.17 per cent, Mittal grew at 68 percent.
Every time a privatization happened, Mittal's teams did their best to grab the company.
In some cases like Slovakia, they lost (to US Steel); but by and large, they won.
QUERIES ??