Mittal Steel says Arcelor talks satisfactory

I don’t know if this will be good for steel users or bad. It will certainly create a new super steel supplier, and concentrate a lot of steel capacity in one company. How they use that concentration, whether to create real synergies and economies or merely to bully steel consumers, remains to be seen. It certainly is a situation that bears watching.

Yahoo! News
Mittal Steel Chief Executive Lakshmi Mittal said on Thursday talks with rival Arcelor (CELR.PA) on a possible takeover were going well and included discussions about the value of the deal.
“We’ve already had a meeting and we will have another … so far discussions are satisfactory,” he told Belgian lawmakers at a reception at the country’s upper house.

7 thoughts on “Mittal Steel says Arcelor talks satisfactory”

  1. Michael,

    I have mixed feelings about this one. Within Europe over the past few months, all the major manufacturers of strip products have increased prices by around the same amount. That includes Arcelor, Thyssen-Krupp, Corus, SSAB, Ruuki et al. I do not know whether or not you have seen a similar pattern in North America/ Canada. Maybe the formation of a new dominant producer will reduce competition, or maybe in Europe (and possibly North America) the emergence of a non EU specific producer may break the “Cartel”
    The wheel will turn again though one day and it will change to a buyers market, maybe next year!

  2. Hi Steve:

    I too am uncertain what to think about these developments. I am a relatively small steel buyer (most slide formers use raw materials relatively sparingly), so you couldn’t prove collusion from my purchasing data, but we keep getting notices that prices are rising again and I’m a bit confused as to why. MEPS has reported that North America is paying the highest price for steel of anyone, and I can’t imagine why that’s true (or why it remains true for a long period of time, since imports should moderate the trend). So something odd is happening, but I don’t know what it is.

    And how will all of this be effected by consolidation? I just don’t know.

  3. An Indian myself, I am proud of what Mr LN Mittal has achieved. I hope the deal goes thru smoothly. I caught his interview on TV, on the Simi Garewal Show. He is such a simple man. One gives so much importance to fluent English these days. But this simple man with broken English and from a small town has reached so far. Hats off to him.

    Vandana

    Stainless steel utensil manufacturer

  4. An interesting comment, from a different perspective, and one I must admit I hadn’t examined. I know nothing personally about the man, haven’t seen the interview you mentioned (nor, in fact, any interviews with him).

    Because this Blog is about issues related to being a metal stamper, my concerns have not been based on the personalities of the leaders of the various involved companies but rather what would be the result for metal users.

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