Business Case Studies, Growth Strategies Case Study, Checkmate Mittal Steel

print page
Tell A Friend
Bookmark
 

Case Categories

Growth Strategies Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Checkmate Mittal Steel: What went Wrong (part-B)

Publication Year : 2006

Authors: Abhijit Sinha

Industry: Minerals, Metals and Mining

Region:Europe

Case Code: GRS0136K

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study
OR





Abstract:
On 26Th Jan 2006, Laxmi Niwas Mittal, the chairman and CEO of Mittal Steel, globally the largest steel maker made a bid for Arcelor SA, globally the second largest steel maker. Mittal’s bid for the European crown jewel made entire Europe frenzy. Spain, France, Luxembourg and Belgium government strongly opposed the deal. Arcelor choose to merge with Severstal, the largest steel maker of Russia. The case discusses what went wrong with Mittal steel, how Severstal plan to leverage the merger with Arcelor and the strategic rationale behind it.

Pedagogical Objectives:

  • To discuss the bidding process involved in an acquisition
  • To discuss the trends, patterns of global steel industry and consolidation as a major strategy in fragmented steel industry globally
  • To discuss acquisition process of Arcelor, the largest steel company of Europe and second largest globally by Mittal Steel, potential synergies and problems associated with the acquisition
  • To discuss how acquisition as a growth strategy help companies to consolidate in fragmented steel industry
  • To discuss the key factors which make an acquisition a successful one
  • To discuss in details about the problems of acquisition and how the maximum leverage can be gained
  • To discuss, the bidding process and thereafter funding of an acquisition
  • To discuss the concept of ‘white knight’, ‘black knight’ and ‘poison pill’.

Keywords : Mittal Steel; Arcelor; Severstal; NAFTA (North American free Trade Agreement); ASEAN (Association of Southeast Asian Nations); Nippon Steel; Electronic arc furnace (EAF); Flat product; Long product; Basic oxide furnace; Technology leadership; Iron ore; Growth Strategies Case Study; Xenophobia; White knight; Poison pill

Contents : 
Mittal Steel: Expanding Globally
Arcelor S.A.: The Second Largest
Severstal: The Russian Steel Giant
Consolidation: A Major Strategy In The Global Steel Industry
Mittal’s Bid And Synergy From Arcelor- Mittal Steel
Severstal: Steal The Deal
Arcelor-Severstal Merger Synergy: Outmanoeuvring Mittal Steel
Arcelor – Severstal: Marriage Made In Hell?

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap