Global steel industry consolidating mode: CNBC

18 October 2006

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.