A presentation on the takeover of Arcelor by Mittal steel: Change in a mature global industry.

Background
History of Mittal Steel
Started by Lakshmi Niwas Mittal an Indian. Headquarters in Netherland. It evolved into one of the worlds largest steel producers by volume and turnover.

Background cont.
History of Arcelor steel
Was formed by three companies Usinor, Arbed and Aceralia. Was the largest steel producer in terms of turnover

Background cont.
Mittal Steel launched its bid of 18.6 Million for Arcelor on the 27th January 2006.

Arcelor declined this bid due to:

Cultural differences Money factor

Mittals Benefit of Arcelors takeover

Economic aspect Political aspect Global aspect

Effects of the takeover on Arcelor

On workers:
Employee Layoffs

On top level management :

Clash of egos Variation of cultures

The winner of the deal

A win-win transaction for all stakeholders involved

Challenges facing the new groups progress

Integrating Arcelor mid-level managers Cultural differences Integration of the separate management teams, sales and product groups, operating assets.

Arcelor-Mittal group
Yes, I will invest in the new group The merger resulted in the creation of the worlds largest steel company.