QUOTE AND NEWS
Reuters  Jul 25  Comment 
Italy's government, which has questioned the validity of ArcelorMittal's planned takeover of Italian steelmaker Ilva, on Wednesday said it was not happy with new bid proposals put forward by the steel giant.
Reuters  Jul 24  Comment 
Steel giant ArcelorMittal said on Tuesday it had accepted new conditions set by Italian authorities for the purchase of troubled steelmaker Ilva, in a move that could facilitate its acquisition of Europe's largest steel plant.
The Times of India  Jul 23  Comment 
A total of 291 companies (or 58.2 per cent) out of top 500 NSE listed entities by market capitalisation will have to appoint non-executive chairpersons, according to data provided by Prime Database based on information available till July 18.
Reuters  Jul 20  Comment 
Steel giant ArcelorMittal said on Friday it would present improved proposals for its planned takeover of Italy's troubled steelmaker Ilva, as the new government questioned how it came to be awarded the deal.
The Economic Times  Jul 19  Comment 
The meeting was more on impediments in the real estate sectors, said NBCC chairman and managing director Anoop Kumar Mittal after the meeting.
The Economic Times  Jul 18  Comment 
ArcelorMittal's first bid was rejected because of its holding in loan defaulting companies, Uttam Galva Steel and KSS Petron.
The Economic Times  Jul 18  Comment 
Mittal said strategy of Airtel is to grow share of high average revenue per user (ARPU) customers and improving customer stickiness by offering new products.
Reuters  Jul 17  Comment 
ArcelorMittal Temirtau, a Kazakh unit of the world's largest steelmaker, will suspend the export of hot-rolled steel coils to Iran due to the re-imposition of U.S. sanctions, Alex Agoureev, an adviser to the company, told Reuters.
The Hindu Business Line  Jul 13  Comment 
The rise of protectionism will hamper growth of world trade and economy, according to Rakesh Bharati Mittal, President, Confederation of Indian Indus




 

ArcelorMittal (NYSE:MT) is a steel producer.

Company Overview

History

ArcelorMittal was formed in 2006 by the merger of Arcelor and Mittal Steels. Previously, Mittal Steels produced the largest amount of steel by volume and Arcelor produced the second largest. After the merger, ArcelorMittal represents around 10% of the world's steel output.

Before the acquisition, Arcelor and Mittal Steels independently acquired various smaller companies, especially distressed steel making assets in Central and Eastern Europe[1]. After the acquisition, ArcelorMittal continues this strategy of horizontal integration. ArcelorMittal is now listed in the stock exchanges in New York, Paris, Amsterdam, Brussels, Luxembourg, and the Spanish stock exchanges. Its headquarters is located in Luxembourg.

CEO and the Board of Directors

ArcelorMittal's CEO is Lakshmi Mittal, currently the fourth richest man according to Forbes. He's a citizen of India who headed Mittal Steels before the acquisition. He's also a non-executive board member of Goldman Sachs.

ArcelorMittal has chosen an international board of directors, with members from France, India, Luxembourg, and other countries. ArcelorMittal maintains that these choices were made to reflect the wide array of international operations conducted by the company.

Financial Analysis[2]

ArcelorMittal's six business segments are Flat Carbon Americas, Flat Carbon Europe, Long Carbon Americas and Europe, AACIS, Stainless Steel, and Steel Solutions and Services.

Flat Carbon Americas (21.6% of total sales)

Flat Carbon Americas makes a range of flat carbon steel products, including slab, hot-rolled, cold-rolled and coated plates and sheets.

In North America, ArcelorMittal USA and ArcelorMittal Hamilton are the largest flat-rolled supplier in the United States and Canada respectively. ArcelorMittal USA is the largest plate producer in North America.

In South America, ArcelorMittal Tuburao and ArcelorMittal Lazaro Cardenas are the largest slab producers in Brazil and Mexico respectively.

Flat Carbon Europe (30.7% of total sales)

Like Flat Carbon Americas, Flat Carbon Europe makes a range of flat carbon steel products, including slab, hot-rolled, cold-rolled and coated plates and sheets. With major production facilities in Belgium, France, Germany and Spain, this segment is the largest supplier of steel sheets to the European automotive industry.

Long Carbon Americas and Europe (25.8% of total sales)

Long Carbon Americas and Europe makes a range of long carbon steel products, including rebars, rails, sections, sheet piles and wire rod. This segment is the world's largest producer of sections, sheet piles and wire rod.

AACIS (10.5% of total sales)

AACIS makes flat and long carbon steel products for Asia, Africa and the Commonwealth of Independent States. With major production facilities in Kazakhstan, South Africa and Ukraine, AACIS is the largest producer of steel products in Africa and one of the largest producers in Asian and the Commonwealth of Independent States.

Stainless Steel (6.7% of total sales)

As the name indicates, this segment of ArcelorMittal makes stainless steels, electrical steels and nickel alloys. With major production facilities in Belgium, Brazil and France, Stainless Steel is one of the world's largest producer of nickel alloys and the only producer of stainless and electrical steels in South America.

Steel Solutions and Services (18.5% of total sales)

Steel Solutions and Services offers a range of services from steel processing and engineering to technical consultancy and project management. With major facilities in Poland, the Czech Republic, Romania and Austria, Steel Solutions and Services in the world's largest steel distributor and processor.

Key Trends & Forces

Raw Materials Prices Affect Costs

ArcelorMittal consumes several resources with volatile prices, such as iron ore, coal, and scrap metal. ArcelorMittal produces 46% of its own iron ore and 13% of its own coal, but must buy the remainder from outside suppliers. ArcelorMittal has sold its less profitable plants to other companies in an attempt to downsize and cut costs.

Emerging Markets

ArcelorMittal's agenda includes capitalizing the productive power of the emerging markets of China and India. Although not yet specified how, ArcelorMittal is actively pursuing emerging markets and recognizing them as sources of profit.

ArcelorMittal has commented on a medium-term ambition to get to 200 million tonnes of annual steel production. With ArcelorMittal in 2009 at under 80 million tonnes of steel output and the next-largest acquisition targets each producing just 25-30 million tonnes of steel per annum, the most likely means of achieving this aim would seem to be:

  • Takeover of several large steel making competitors - including Baosteel, POSCO, Nippon Steel, JFE. The current ownership structures of these firms (which involve Government ownership e.g. for Baosteel) suggest this to be an unlikely scenario
  • Organic growth - where given the importance of the construction sector in steel consumption; and the increasing prominence of Asia in total steel demand - more probable strategic options may involve ArcelorMittal's pursuit of building design, building fabrication, steel distribution and erection joint ventures in countries such as China, Japan, India and Korea.


Competition

ArcelorMittal competes with:

References

  1. History of ArcelorMittal
  2. {{cite 10k|ticker=MT|year=2009|form=20-Yeah buddyyyyyyyyyyyyyy ===Business Segments<ref>{{cite 10k|ticker=MT|year=2009|form=20-F|link=http://www.wikinvest.com/stock/ArcelorMittal_(MT)/Filing/20-F/2010/F83672219|pg=79}}</li></ol></ref>
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