Mittal'S Magic Of Mergers And Acquisitions

Mittal's director of a series of "global resources for our own use" mergers and acquisitions war, so that the India iron and steel enterprises jumped to become the world's largest iron and steel enterprises.

Compared to the natural growth of the enterprise, M & A is undoubtedly a fast and big shortcut. This model has also become an important means of integrating global resources for pnational enterprises. Since 1990s, the scale of global cross-border mergers and acquisitions has become larger and larger. According to the data of the joint China World Trade Center development conference, the scale of global pnational mergers and acquisitions in 2000 has reached 11000 billion US dollars, accounting for 80% of the total amount of pnational investment in the year, the number of pnational mergers and acquisitions in 2006 reached 6974, the paction scale reached 880 billion US dollars, accounting for 70% of the total pnational investment.

M & A is also a magic weapon for the rapid growth of many enterprises, such as CISCO, a world-famous company. When it was founded in 1984, it only earned hundreds of thousands of dollars in annual revenue. Since 1993, CISCO has been developing rapidly through continuous acquisitions. After 110 acquisitions, CISCO has now become the largest network equipment manufacturing and service company in the world with annual sales of 30 billion dollars.

Similarly, the Mittal Steel Co Nv from India built up the largest steel enterprise in the world in the short span of more than ten years through mergers and acquisitions.

In early 2007, when Baosteel successfully defeated Mittal's acquisition of Bayi Steel, China's steel companies seemed to really feel that the threat posed by Mittal's steel giant was around him.

As early as five years ago, the Indian lakhemi Mittal had started fighting all over the world, earning all the steel companies in the world and gaining the top 100 in Forbes.

But at that time, not many people in China knew the name of Mittal. At this time, China had surpassed the United States and Japan and jumped to the world's largest iron and steel consumer. Chinese steel companies still seemed to be in turmoil. When we were still concerned about Europe and America, Mittal successfully acquired the largest steel group in Europe in 2006, Arcelor, and became the world's largest Steel Corp.

Acquisition of a steel kingdom

In 2006, Mittal bought $33 billion 200 million for Arcelor, the largest steel group in Europe, making the new group annual output of over 1.1 billion tons, three times the number of Japanese steel that ranked second, and became the king of the world's steel industry.

At that time, it was only 50 years since Mittal group was founded.

Iron and steel, an ancient industry, has created a generation of financial oligarchs like Carnegie and Morgan. But over the past half century, with the rise of new industries, a large number of Steel Corp have come to the end. This increasingly depressed industry has been on the decline.

When steel companies in the United States and other places rush to court for bankruptcy, Laksh miMittal, a India iron and steel company, discovered treasure in this rusty industry. Lakshmi Mittal,

Due to the scattered distribution of resources and historical reasons, iron and steel enterprises in various countries or monopolies or state-owned enterprises make the steel industry become a highly integrated industry in the world. On the other hand, because of the endless demand for iron and steel in emerging markets such as China and India, the Michaelis profit model is capturing these opportunities.

In the past 19 years, when the competitors sniffed at those old steel factories, lahemi Mittal gradually built up a strong world steel kingdom on the ruins of these factories.

After LAK Mi Mittal directed a series of mergers and acquisitions that "global resources are for us", the London based India iron empire extended its territory from Eastern Europe to Europe and Africa.

Since the government of India restricted private enterprises to enter the steel industry, laommittal founded the IspatIndo in Indonesia in 1976 and was run by lazie Mittal, the eldest son.

In 1989, in order to get cheap raw materials, lahemi Mittal bought a heavily damaged state-owned steel mill in Trinidad and Tobago, and it turned it into a deficit a year later.

Since then, he has embarked on the operation route of annexation and pformation of deficit state owned enterprises.

In 1994, lahemi Mittal left his father and two younger brothers in India and began to build an iron empire across the globe.

In the past five years, Mittal has bought 20 companies, and entered the US in 2004 and bought the international iron and Steel Group for 4 billion 500 million dollars.

At present, the group has 61 iron and steel plants in 27 countries and regions in the world, with annual output of 1.1 million tons of steel, accounting for 10% of world steel output and sales of 56 billion euros.

It is estimated that steel output will rise to 150 million to 22 billion tons by 2015.

It is noteworthy that the merger was very successful. In the early 2006, when it came to the European business community in a fast and high-profile manner, he knew that the name of Mittal was still very few.

His move to buy the French Steel Corp Arcelor made French government officials startled, and even did not know whether they were attacked by the United States or India.

The answer, of course, is neither from the US nor from India.

Mittal Steel is a ubiquitous and tractable company, which helps to explain why the merger of Mittal and Arcelor into the world's largest steelmaker, Arcelor Mittal, will be surprisingly successful.