this deal, the new entity will be better placed to create
major expansion possibilities," say steel industry
analysts with a leading foreign broking firm based in
in the week, Mittal''s Ispat Interntional had bought over
Wilbur Ross''s Ohio-based ISG for a record $17.8 billion.
Simultaneously, the Netherlands-based Ispat International,
in which Mittal holds 77 per cent shareholding, will buy
the Mittal family''s LNM Holdings in a reverse take-over
by issuing $13.3bn in shares. The new Mittal Steel will
then pay $42 per share in cash and stock to the shareholders
estimate that once this deal completed by the end of the
first quarter next year, the group''s market value would
be about $21bn.
Steel will emerge the world''s most spread out steel conglomerate.
It is due for listing on the New York Stock Exchange and
Euronext Amsterdam with plants spread from Poland to Mexico
and Indonesia to South Africa with the likelihood of an
entry into India.
Steel is the largest and the ''most globalised'' steel company
in the world and is getting listed on the New York Stock
Exchange and Euronext Amsterdam. His empire now stretches
from Poland to Mexico and Indonesia to South Africa with
the liklihood of an entry into India.
a recent interview Mittal, who currently has operations
in four continents and presence in 14 countries, said
that he is considering a foray into India steel sector.
Mittal''s plans to enter the Indian steel business will
galvanise the domestic market, adding that this could
throw up several acquisition opportunities.
is an irony, but it is true. We want to do business in
India. It is a growing economy," Mittal told the
Wall Street Journal, in an interview published
on October, 28, 2004.. And what is encouraging him to
come to India is what drove him out of the country
government policies. In 1976, Mittal left for Indonesia
to start Ispat Indo, a 60,000-ton steel plant. The changes
in government policies, which have created a friendly
environment for foreign steel-makers to develop partnerships
and bring investments are an attractive incentive for
the world''s largest steel tycoon to return.
plans to come India are at a time when other global steel
players like South Korea''s Posco are planning to set up
plants in India, says an analyst from Kotak Securities.
"This could lead to fresh capacity creation in the
country and large investment in terms of FDI," he
Ispat group has been making a series of acquistions in
the global markets where it has acquired steel capacities
in former communist states in USSR and East Europe. Other
acquisitions are also in the pipeline with Mittal showing
interest in acquiring Turkey''s largest steel making plant,
Eregli Demir Celik, with its privatisation expected early
after the recent deal, Mittal, who ranked fifth in the
Sunday Times ''rich list'' last year with an estimated
fortune of $3.5bn, is now said
to be worth $12bn, placing him ahead of Russian oligarch
Roman Abramovich ($7.5bn) and the Duke of Westminster