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.

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