Arcelor

Source: Wikipedia, the free encyclopedia.

Arcelor S.A.
Founded18 February 2002
Defunct2006
FateMerged with Mittal Steel
SuccessorArcelorMittal (2006)
Headquarters
Luxembourg City
,
Luxembourg
ProductsSteel
Revenue€40.6 billion (2006)
Number of employees
103,935 (2006)
Websitewww.arcelor.com

Arcelor S.A. was the world's largest

Arbed (Luxembourg). Arcelor is now part of ArcelorMittal after a takeover by Mittal Steel
in 2006.

Business

Once employing 310,000 employees in over 60 countries, it was a major player in all its main markets:

household appliances, and packaging
, as well as general industry. With total sales of over €40 billion, Arcelor was, by 2006, one of the world's largest steel manufacturer in terms of turnover.

It produced long steel products, flat steel products and inox-steel.

In January 2006 Arcelor announced the acquisition of

Canadian dollars
.

arcelor
arcelor

Merger with Mittal Steel

The company was the target of a

Mittal Steel. Arcelor compensated Severstal €140 million for the failed merger attempt. Lakshmi Mittal became the president and Arcelor chairman Joseph Kinsch was appointed chairman of the new company until his retirement.[3][4]
Arcelor's merger with Mittal created the worldwide leader in the steel industry, increasing its bargaining power with suppliers and consumers. Mittal Steel agreed to pay €40.37 a share to Arcelor, doubling its original offer.

Reaction to the takeover

Arcelor's directors strongly opposed the takeover, as did the governments of France, Luxembourg and Spain. The Belgian government, on the other hand, declared its stance as neutral and invited both parties to deliver a business plan with the future investments in research in the Belgian steel plants. The French opposition was initially very fierce and has been criticized in the Indian media as double standards and economic nationalism in Europe. Indian commerce minister Kamal Nath warned that any attempt by France to block the deal would lead to a trade war between India and France.[5]

On June 20, the above claim by economists was confirmed when Severstal increased its valuation of Arcelor. Management of Arcelor had in fact undervalued the company itself. The capability of management which had openly supported the previous valuation of Arcelor came into question. Further the combined markets of France, Belgium, Luxembourg and Spain chided Arcelor management and suspended trading of its stock.

On June 26, the Board of Directors recommended the approval of the improved Mittal offer (49% improvement compared to the initial offer with 108% improvement of the cash component), proposed the creation of Arcelor-Mittal with industrial and corporate governance model based on Arcelor and scheduled a corporate meeting for June 30 to vote on this.[6]

Products

The products of Arcelor are divided into three groups: Flat steel products, long steel products and stainless steel.

Flat steel products

The main production sites of flat steel products are

Bremen, Eisenhüttenstadt and recently São Francisco do Sul
in Brazil.

See also

References

  1. ^ "Arcelor Board of Directors unanimously rejects Mittal's hostile proposal" retrieved from Arcelor.com on 2006-02-07 Archived February 2, 2006, at the Wayback Machine
  2. ^ "Management Board". Arcelor.com. Archived from the original on 11 February 2006. Retrieved 7 February 2006.
  3. ^ Arcelor agrees to Mittal merger Archived 2006-09-01 at the Wayback Machine on International Herald Tribune
  4. ^ Arcelor, Mittal decide to merge: Reports Archived 2023-01-07 at the Wayback Machine on Rediff.com
  5. ^ "India, EU back Mittal's bid on Arcelor". hindustantimes.com. Archived from the original on 19 February 2006.
  6. ISSN 0362-4331
    . Retrieved 20 March 2022.

External links

Wikimedia Commons has media related to Arcelor.
Wikiquote has quotations related to Arcelor.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Arcelor&oldid=1209661296"