Harvard business case studies solutions assignment help. The pipe geometry was also very complex and for the 40 years that the. Arcelor agrees to mittal takeover the new york times. Regulation ec no 92004 merger procedure article 62 nonopposition date. The chief financial officer of the new merged company arcelormittal, aditya mittal, refers to the merger as the best combination within the steel industry wharton school, 2006. Ceo lakshmi mittals family owned 88% of the company and its headquarter was in rotterdam, netherlands the company was the worlds largest steel producer by volume and also the largest in turnover and is now a part of arcelormittal it was the major player in steel. Arcelor mittal merger case cross culture management. Cladistic analysis of mayflies suggests that dispersal was very asymmetrical after. It documents stock price behaviour around the crucial events surrounding the acquisition. The mittal family owns 88 % of capital and 97 % of right to vote. London, june 25 after a bitter battle, arcelor agreed on sunday to a merger valued at 26. It also provides estimates of synergy benefits and a worksheet that allows students to directly calculate the consequences of the synergies of shareholder value. One of the most controversial business deals ever the.
When you use mergers and acquisitions as a path to growth for creating the worlds number one steel company, integrating the new people and new ideas is a significant challenge. Arcelor mittal takeover case study help case solution. Moreover, it would lead to gigantic scale reductions costs. Mittal acquires arcelor in a battle of global titans 1. This analysis focuses on the cultural aspects, which could have influenced the merger and the postmergerintegration of arcelor and mittal steel in either positive or negative way. Arcelor mittal merger case cross culture management team idiana pramesh rsaurabh singhsameerchaubaldeepak choediadeepak shindeferdinand jpadmanabhajohind m 2. The case study offers a scope for discussing the rationale of the acquisition in the recent global trends, the value chain of the industry and how. It was formed in 2006 from the takeover and merger of arcelor by indianowned mittal steel. Jun 25, 2006 arcelor s board today accepted a revised merger offer from mittal steel, closing the door on russian rival oao severstal and creating a company that would combine the worlds two largest steelmakers. With industrial facilities in more than 19 countries, it has an annual production capacity of 114 million tons of liquid steel. Responsible sourcing at arcelormittal a guidance document. In case of successful merger, the team arcelor mittal would bring life to a monster worth 100 billion of tons a year.
Secondly and most importantly arcelor had already begun to respond to the deal by taking potshots at mittal as a. The case study also allows the discussion of how mittal steel can leverage the acquisition by strengthening its position across the globe. Rupinder katoch abstract hostile takeovers become the site of battlefields as it is witnessed in arcelor mittal takeover case. Merger of mittal and arcelor steel essay example topics. Jun 26, 2006 london, june 25 after a bitter battle, arcelor agreed on sunday to a merger valued at 26. For tata steel, which has been pursuing inorganic growth in the asian region for a while, the move into europe appears to go well with its strategy of global growth. Presentation made by bharathidasan institute of management students. A case study of arcelor mittal shashi srivastava, divya srivastava.
Mergers and acquisitionsa case analysis on arcelormittal and tata corus deal by. Solved the merger of steel makers arcelor and mittal in. As a result, severstal too considerably improves its offer prices for the merger. Jun 26, 2006 mittal steel said last night it had finally won the backing of the directors of rival arcelor for a merger which will create the worlds largest steelmaker five months after first announcing its.
The takeover of arcelor by mittal steel change in a mature. The challenge the customer was experiencing decreased flow rates in an oil waste pipe due to a build up of grease and sediment. Mergers, acquisition, operating synergy, financial synergy. A merger between those two companies would let mittal benefit from the technological knowledge. High influence of politicians and unions in europe dependence on eu economic and. The project waste water ice pigging was selected because of its speed and simplicity to clean 650m of a 150mm stainless. Fame of arcelor as a eu conqueror of world steel markets european government resistance risk of arcelor rise exchange rate risk kanter, 2006 risk immediately after the deal.
Mittal steel said last night it had finally won the backing of the directors of rival arcelor for a merger which will create the worlds largest steelmaker five months after first announcing its. The case study offers a scope for discussing the rationale of the acquisition in the recent global trends, the value chain of the industry and how mittal steel plans to leverage it. Download file to see previous pages having reached the number one position in steel manufacturing and assessing the need to consolidate and to take advantage of the economies of scale, in january 2006, lakshmi nivas mittal of mittal steel netherlands took a historical decision to make an attempt to acquire the next biggest steel company arcelor s. Arcelormittal is the worlds largest steel producer, with an annual crude steel production of 92. Case studies of projects executed with arcelormittal steel sheet piles all around the globe, from permanent waterfront structures to temporary cofferdams. Its aggressive takeover bid from mittal steel, the leading steelmaker of the world, can also lead one to ask questions about the financial situation of the francoluxembourg group. Mittal steels pursuit of arcelor a case harvard business school. You have to value arcelor as well as analyze the implications for optimal capital structure. Arcelor greenlight for mittal merger business news. Cultural analysis of the merger of arcelor and mittal. Merger of mittal and arcelor steel essay example topics and. A merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. Arcelor greenlight for mittal merger business the guardian.
View essay case study mittal from fina 3301 at northeastern university. Arcelormittal a case solution and analysis, hbr case study. The companies have got the approval of merger from different authorities. The combined arcelor mittal accounted for 10% of worlds steel production. This merger would have made the new severstalarcelor entity too big for mittal steel to buy. In addition, it provides a spreadsheet that enables pupils to compute the implications of synergies for shareholder value. In addition, it provides a spreadsheet that enables pupils to compute the implications of synergies for shareholder value in addition to approximations of synergy gains. Manfred van vlierberghe, ceo of arcelormittal belgium and chairman of the management committee. The merger was the brain child of mittal ceo, lakshmi mittal and his son, aditya.
Figure 2 regional trade blocs nafta uc atlas, 2006 figure 3 regional trade blocs mercosur uc atlas, 2006 3. Jan 16, 2014 this merger would have made the new severstalarcelor entity too big for mittal steel to buy. Arcelor mittal takeover case solution and analysis, hbs. Arcelor mittal a tale of corporate conquest marketing essay. Thus, the purpose of this work is to analyse the cultural factors which possibly played a role at. The case describes the hostile bid for arcelor mittal in the first half of 2006. This case has been compiled from published sources. Arcelor greenlight for mittal merger steel firms directors give blessing to 26bn deal russian group ditched after daylong meeting mark milner, industrial editor monday 26 june 2006 the. The research hypothesis represents equating the impact of the arcelor mittal merger in terms of the industry dynamics in pricing, market positioning, competitive advantages, or other areas as uncovered by research to prove or disprove the basis for the merger as a sound proposition in the face of the preceding. This is exactly the situation faced by arcelormittal. Risks of arcelor mittal merger authorstream presentation. Arcelor mittal takeover this case describes the hostile bid of mittal for arcelor in the first half of 2006. Arcelormittal a case solution, arcelormittal a case analysis, arcelormittal a case study solution, from the perspective of a top manager and chief executive mittal arcelor, this thing looks to postmerger integration. The historic merger of arcelor and mittal steel laid the foundation for this deal.
Camparison between both deals in the mittal steelarcelor deal, the evebitda was 6. Cultural analysis of the merger of arcelor and mittal steel. Although the proposed merger did not offer arcelor shareholders as much value as mittals deal, arcelor had structured the deal in such a way that it did not require. Ceo lakshmi mittals family owned 88% of the company and its headquarter was in rotterdam, netherlands the company was the worlds largest steel producer by volume and also the largest in turnover and is now a part of arcelormittal it was the major player in.
It was formed in 2006 from the takeover and merger of arcelor by indian owned mittal steel. Pdf the steel war mittal vs arcelor john mahaffey academia. Arcelor mittal is the worlds leading steel and mining company, present in 60 countries, with a workforce of 210,000 employees. Arcelor mittal merger case cross culture management slideshare. Arcelormittal is making major investments, not only in terms of resources but also in time and in management attention, to remain at the forefront of digitalisation in the steel industry. Arcelor mittal mergers and acquisitions companies scribd. The aim in each case will be to generate business benefits, as well as environmental and social benefits for the communities providing the goods and services. The arcelor group, the worlds leader in the steel industry is already well known to all and its current media exposure will not reverse the phenomenon. Jun 26, 2006 may 9 mittal willing to lift bid for arcelor if the board will recommend the offer. Jan 10, 2012 camparison between both deals in the mittal steelarcelor deal, the evebitda was 6.
Responsible sourcing at arcelormittal a guidance document for. The new company will be named arcelormittal and will be. The case illustrates the intimidating bid of mittal for arcelor in the first half of year 2006. Arcelor mittal merger case cross culture management 1. Arcelormittal a case solution,arcelormittal a case analysis, arcelormittal a case study solution, from the perspective of a top manager and chief executive mittal arcelor, this thing looks to postmerger integration. Executive summary corporate responsibility is at the core of arcelormittal south africas business strategy, with a focus on four key areas. Arcelor had fought a long defensive battle against the.
Arcelor shareholders received mittal steel shares plus euro 150. The cfo himself, believes that the corporate cultures of arcelor and mittal steel did not differ significantly. Arcelors board today accepted a revised merger offer from mittal steel, closing the door on russian rival oao severstal and creating a company that. The takeover was of interest since it was the concentration of 3 bitter arguments. May 12 mittal and arcelor post firstquarter profit declines on slumping steel prices and rising rawmaterial costs.
Case study an indepth strategic analysis about the merger this material has. Solved the merger of steel makers arcelor and mittal. The management committee of arcelormittal belgium is composed as follows. The deal would create the worlds largest steelmaker, with more than 10% of the global market. This case mittals biggest gamble, bid for arcelor focus on laxmi niwas mittal popularly known as lnm, chairman and ceo of mittal steel, the worlds largest steel company, made a bid for arcelor sa, the worlds second largest steel company. Major themes derived from arcelormittal steel merger european academic research vol. Obviously this was not possible in case of arcelormittal, as in the first instance arcelor management did not really wish for a merger of any kind with mittal. Five month long fierce takeover battle occurred between arcelor and mittal steel which brought a lot of excitement for the steel industry. Documenta stock price behavior around the critical events surrounding the acquisition. Timeline of mittals courting of arcelor marketwatch. May 9 mittal willing to lift bid for arcelor if the board will recommend the offer. Arcelor mittal takeover case solution and analysis, hbs case. In case of successful merger, the team arcelormittal would bring life to a monster worth 100 billion of tons a year.