This guy Mittal is phenomenal! He has been able to build a business from almost nothing and by buying losing steel plants into the largest steel empire of the world!
Now, he has engineered a Merger with Arcelor!
European steelmaker Arcelor and the L N Mittal Group have decided to merge in principle, according to reports.
Under the agreement, the stake of the Mittal Group will reduce to 45 percent and the merged firm will be called Arcelor Mittal. While Lakshmi N Mittal will be the co-chairman, the majority of the board will be from Arcelor.
Now what needs to be seen is what this portends for him. For this is a merger of his entire group with Arcelor and still the majority of the board will be from Arcelor although Mittal group was a bigger steel empire! I am sure he would have looked at all the clauses to make sure he is not short-changed in this deal.
Thinking about this deal more – it kind of surprises me that Mittal would have agreed to a 45% stake in the merged firm. I am wondering on what dimension was Arcelor bigger? Revenues or Market Capitalization? I will try and find out the details and post it here.
One thing, however, is sure – the new company will be so huge it will worry the downstream manufacturers who use iron and steel as raw materials – for this company will have 10% market share of the world steel and a market capitalization of close to $40 billion!
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