The world's largest steelmaker is always busy sourcing and integrating deals. Here's a look at what CEO Lakshmi Mittal and ArcelorMittal have been up to in recent days. To capture a stake in the Chinese automotive sector, the firm is setting up a
$729 million automobile steel joint venture with China's Hunan Valin Group and Hunan Valin Steel Co. Once approved by regulatory agencies, the industrial and commercial automotive JV will produce 1.2 million tonnes of flat carbon steel a year, mainly for automotive applications. Hunan Valin Steel will own 34% in the JV, and ArcelorMittal and Hunan Valin Group will each have 33%.
And here's few more tons of news. ArcelorMittal:
- may enter the takeover battle for Rio Tinto Ltd. to secure iron ore supplies, according to the Financial Times.
- increased its stake in Queensland-based Macarthur Coal Ltd. from 14.9% to 19.9%, a value of $809 million. The deal "secures its supply of raw materials."
- had its CEO Lakshmi Mittal named an independent director of New York investment bank Goldman Sachs Group Inc.
- intends to acquire 60% of the entire issued share capital of DSTC FZCO, a newly incorporated company in the Dubai free zone.
- is acquiring Mid Vol Coal Group, which has operations in southern West Virginia and southwestern Virginia.
- is buying Bayou Steel, a structural steelmaker with facilities in LaPlace, La., and Harriman, Tenn., for $475 million.
- now owns almost 25% of Turkish steel company Erdemir. The value of the acquired stake was $869 million.
- is purchasing Bakermet, a market leader in the scrap metal recycling industry in eastern Ontario.
And that was just June, folks. As we previously reported, with more than 320,000 employees in more than 60 countries, communicating strategy at the firm is a difficult task, and Arcelor has a unique way of doing it: creating a
Web TV series that was launched after Mittal's $33.5 billion takeover of Arcelor in 2006.
Even more interesting, Hindu.com notes ArcelorMittal accounts for only 10% of global output, so it could grow much bigger before attracting the attention of the antitrust authorities. -
Baz HiralalSee the Chinese auto steel JV announcementMittal eyes joining Rio battle for ore supplyLakshmi N. Mittal to join Goldman Sachs Board
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