The global steel industry has been consolidating for the past several years. But the biggest deal has been Mittal's acquisition of Arcelor, reports CNBC-TV18.

The man of steel has brought the steel consolidation to the fore. L N Mittal created the world's largest steel company when he bought into Arcelor for $33 billion, earlier this year.

That was the biggest one. But Mittal has been shopping for a while. In August last year, he bought Ukrain's KryvorozhStal for $4.6 billion. The steel industry has been consolidating at a scorching pace. Last year alone, there were 165 deals worth nearly $27.4 billion.

Turkish company Oyak acquired Erdemir for $2.5 billion and Severstal bought Italian steelmaker Lucchini for $2.3 billion.

Earlier, in May 2003, US Steel bought National Steel Corp for $1.12 billion. Tata Steel itself has made two acquisitions in the past two years. It bought Singapore's NatSteel for $486 million last year and Millennium Steel for $175 million this year.

Now if Tata Steel acquires Corus it will create the world's fifth largest steel company. With Tata Steel's legendary low-cost production mantra joining hands with Corus' pemium products, this could become a marriage made in heaven.

Reacting to the Tata-Corus deal, Sajjan Jindal, vice chairman and managing director, JSW Steel, feels that even though Tata Steel's move may not have a direct impact on the Indian steel industry, it will encourage other Indian steel companies to bring about the required consolidation in the industry, reports CNBC-TV18.

Jindal said, "As the industry matures, consolidation is the buzzword and this deal is the right thing. And the Tatas must take the lead, being one of the oldest steel players out of India, and even though they have delayed it, this is a right step they have taken and it's a very good thing that has happened."

"It will be good for the global steel industry. Regarding Indian steel, I don't think it will have any direct impact but it's a good sign in the sense that other steel companies in India would take this as a step in the right direction," he further added.
He also says that even though Corus is an expensive buy, it will give Tata Steel a broader perspective in the steel industry.

"Corus, especially the UK manufacturing facility has a very high cost, but the point is, this will give them (Tata Steel) a good market share and this will give them a broader perspective in the steel industry," he said.

He also mentioned, "So, all in all, though it seems to be a high cost buy as of today, so was Arcelor when Mittal took over Arcelor. But eventually this is all a number game and it's ultimately the holding capacity, the capacity that you create and the one umbrella, that matters," said Sajjan Jindal.