The merger of two largest steel manufacturing groups naturally raised expectations of new industrial records which were not behind. Take a look at the business done by post-merger Arcelor Mittal.
❑ In 2008 L.N. Mittal earned share profif of 925.5 million. This was given a profit of $ 0.375 per share. L.N. Mittal has 623.62 million shares of Arcelor-Mittal. Mittal family has 41.04% financial risk in the group. The price of those shares calculates to $ 39.6 billion whereas other shares are 56.96%. The group paid a dividend of $ 2.2 billion to its shareholders.
air pollution by 40% by the year 2012
❑ In 2008 LNM included oil and gas related projects in a newly formed company in which his share would be 49%. The company will work with ONGC-Mittal and ONGE. After setting up Bhatinda refinery it plans to build a refinery at Vizag (Andhra) too.
❑ Arcelor-Mittal decided to invest $ 20 billion in India in joint projects. Several steel plant would be set up. Indian automobile industry wil be their consumer market. Under the joint policy of production and distribution investment of such a huge amount in India proves the clout of LNM in the Arcelor-Mittal board of directors.
❑ When the largest steel producers of India Tisco of Tata Group planned to acquire an Indonesian steel mill Arcelor-Mittal also jumped into the fray. Indonesian authorities reveal that in ESSER there is a third one also in the race. Infact steel is in geat demand in Asia due to building constructions and car making at huge scales. Let us see who wins this race.
❑ Arcelor-Mittal has bagged iron ore mining rights in eastern Jharkhand. Mittal had promised a $10 billion project there for which a 500 acre land piece had been provided. Arcelor-Mittal is to set up a 12 million tonne annual capacity steel plant there. The proposal to set up another such big plant in Orissa is under consideration. It should be noted that Jharkhand, Orissa and Chattisgarh have 70% coal reserves and 55% iron ore reserves.
❑ Arcelor-Mittal is proposed to acquire Bulgarian steel mill in $1.2 billion, payable in instalments. Ironically this sick mill belongs to Vinod Mittal. The mill is under heavy debt. Arcelor-Mittal has provided $ 47 million for immediate expenses, $ 200 million for working capital and $ 500 million to pay off debts.
❑ In July 2008 London media circulated a news that Mittal intends to take over luxury hotels. Negotiations are reported to be in progress with Waughn Essen Holel group.
❑ Arcelor-Mittal has decided to acquire a large iron ore mine in Brazil. In $ 810 million a port has also to be developed. The group is also going to invest
$40.5 million to modernise Rio-de-Jenerio port. Arceler Mittal experts feel that in near future the cost of iron ore is likely to go up considering the demand for steel. The group wants to have enough raw material resources of its own.
