Anaysing the Merger of Arcelor & Mittal Companies

Abstract

In an increasingly global environment, it is the need of the day to expand operations globally. Mergers and acquisitions in this fast-paced, high-tech world, tends to be much faster and is an effective way to penetrate a foreign market, with its different national tastes. In this global environment mergers are no more problematic due to trade liberalisation, innovation and deregulation which have caused markets to open and expand, entry-barriers to fall and enabled more foreign firms to provide meaningful competition. This thesis particularly focuses on the merger saga of two giant steel producing companies of the world, Arcelor and Mittal. Mittal is owned by an Indian tycoon and is listed on New York exchange while Arcelor is a combination of three European companies, and is based in Luxembourg. It took five months for both the companies to come together as lots of controversies were built among them, which is discussed in detail. The thesis also discusses the possible synergies both companies will gain and the challenges that the combined entity will face.