Until a few years back hardly anyone would fancy investing in an industry as mundane as steel. Today, its no longer so. One man has transformed what was once a dormant industry into one of the most buzzing industries in the world today.
When
most dubbed it a dud industry, he foresaw a future for it. When most dumped it
he embraced it. And he has proved every body wrong. The man in question is none
other than Laxmi Niwas Mittal, the master deal maker and the uncrowned king of
the global steel industry. After extending his empire from Indonesia to Trinidad
to Mexico to Kazakhstan, during the last five years or so, Mittal was sure this
was not enough in his drive to consolidate the highly fragmented global steel
industry. His efforts were in the right direction, but lacked giant strides to
put together a giant empire. Hence, when he launched his hostile bid for the Luxembourg-based
Arcelor, the world's number two steel maker, after Mittal Steel, Mittal's acquisition
vehicle, in January, this year, it was clear Mittal juggernaut had made that giant
move which if materialized would not only further strengthen his steel empire
but also put it in an enviable position vis-à-vis rival.
And
the world did not have to wait for long. After a bitter fight that dragged on
for five months amidst several unfolding dramas that included Guy's ferocious
use of poison pills like calling the Russian steel major Mardashov's Severstal
to act as white knight among, Mittal's master stroke was finally delivered: Mittal
Steel clinched Arcelor. The win not only gives Mittal, the size (the Arcelor-Mittal
combine is three times the size of the now number 2 steel maker, Nippon Steel
of Japan) but also the much-needed clout to tackle the powerful buyers like the
auto industry. Apart from these, there are several other benefits that make the
deal very special. However, Mittal for now can relax after grabbing the prized
catch, the rivals cannot afford to sit quiet as survival threat looms large. |
