Sunday, June 25, 2006

Arcelor agrees to merge with Mittal

After 5 months of much ups and downs, and even a hint at racism, Mittal will merge with Arcelor, in a classic win-win. Mittal gets Arcelor, Arcelor got its price of 43 Euros and Majoirty of seats in the board and Lakshmi Mittal becoming a co-chairman with Joseph Kinsch. Mittal never talked about upping the offer, but then he knew he would. His shareholding would come down to 45 %. All for the best though. 87% was too much family... 45% is more proffessional. Networth is what counts...

The new entity will be called Arcelor-Mittal and not Mittal-Arcelor. Duh!

We might see more consolidations in the steel sector, which is much needed.
It would have better if the deal were three way with Severstal as well. The Mittal-Arcelor combine or Arcelor-Mittal even after the merger will account for only 10% of Global steel production.


It would interesting to watch the metal scripts on monday.
I have some metal holding bought at the recent bottom :-)

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