Mittal Steel Company
From Wikipedia, the free encyclopedia
| Mittal Steel Company, N.V. | |
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| Type | Public (Euronext: MT),(NYSE: MT) |
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| Founded | Sumatra, Indonesia (1989) |
| Headquarters |  Rotterdam, Netherlands |
| Key people |  Lakshmi Mittal, Founder, Chairman and CEO |
| Industry | Steel |
| Products | Steel, Flat Steel products, Coated Steel, Tubes and Pipes |
| Revenue |  $28.132 billion USD Year to 31 Dec 2005 |
| Operating income | $4.746 billion (2005) |
| Net income | $3.365 billion (2005) |
| Employees | 320,000 (2006) |
| Website | Mittal Steel |
| Dissolved | Merged (2006) |
Mittal Steel Company N.V. (Euronext: MT, NYSE: MT) was the world's largest steel producer by volume, and also the largest in turnover. Company is now part of Arcelor Mittal.
CEO Lakshmi Mittal's family owned 88% of the company. Mittal Steel was based in Rotterdam but, managed from London by Mittal and his son Aditya. It was formed when Ispat International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. (the remnants of Bethlehem Steel, Republic Steel and LTV Steel) in 2005. On 25 June 2006, Mittal Steel decided to merge with Arcelor, with the new company to be called Arcelor Mittal. The merger has been successfully approved by shareholders and directors of Arcelor making L.N. Mittal the largest steel maker in the world.
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[edit] History
- 1989: Acquisition of Iron & Steel Company of Trinidad & Tobago
- 1992: Acquisition of Sibalsa
- 1994: Acquisition of Sidbec-Dosco
- 1995: Acquisitions of Hamburger Stahlwerke, which formed Ispat International Ltd. and Ispat Shipping, and Karmet
- 1997: Ispat International NV goes public
- 1998: Acquisition of Inland Steel Company
- 1999: Acquisition of Unimétal
- 2001: Acquisitions of ALFASID and Sidex
- 2002: Business assistance agreement signed with Iscor
- 2003: Acquisition of Nová Huť
- 2004: Acquisitions of Polskie Huty Stali, BH Steel, Macedonian facilities from Balkan Steel. Creation of Mittal Steel
- 2005: Hire Deloitte as the primary auditors for the company
- 2005: Acquisition of International Steel Group
- 2005: Acquisition of Kryvorizhstal
- 2005: Investment of $9 billion in Jharkhand, India announced
- 2006: Merger with Arcelor announced and completed after much controversy
- 2006: Investment for 12 million tonnes capacity steel plant announced in Orissa, India
[edit] Business
Mittal steel is the world’s number one steel company, with 320,000 employees in more than 60 countries. The company was the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
[edit] Bids and acquisitions
In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal for $4.8 billion in an auction after a controversial earlier sale for a much lower price to a consortium including the son-in-law of ex-President Leonid Kuchma was cancelled by the incoming government of President Viktor Yushchenko.
In 2005 Lakshmi Mittal flew into Jharkhand, India to announce a $9 billion investment to build a greenfield steel plant with a 12 million tonnes per annum production capacity.
On 27 January 2006 it announced a $23.3 billion (€18.6 billion, £12.7 billion) bid for Arcelor. On 19 May 2006 Mittal increased its offer for Arcelor by 38.7% to $32.4bn, or $47.34 per share (€25.8bn, €37.74 per share). On 25 June 2006 Arcelor, in a board meeting announced that it has accepted a further sweetened offer ($50.68 or €40.4 per share) and the new company would now be called Arcelor-Mittal, thus successfully ending one of the most controversial and publicised takeover bids in modern corporate history. Arcelor-Mittal is now by far the largest steelmaker in the world by turnover as well as volume, controlling 10% of the total world steel output.
