Mittal Steel leads way in global metals acqusitions

New Delhi, May 30 (UNI) Mittal Steel, in news for its 25 billion dollar bid for Arcelor, led the way in the acquisitions,in the global metals industry by acquiring 93.02 per cent stake in Ukrainian integrated steel producer KryvorizhStal in October 2005 says a report by PriceWaterHouse Coopers.

The value of the top ten deals that took place in 2005 was 19.4 billion dollars, a drop from the 28.5 billion dollars that changed hands in the top ten deals of 2004.

There were 38 cross continental deals collectively worth 11.6 billion dollars in the steel sector in 2005 compared with 21 such deals worth 7.8 billion dollars in 2004.

While the number of regional steel transactions increased from 96 to 127, their aggregate value at 15.8 billion Dollars was 67 per cent of the value that was swapped the previous year.

PriceWaterHouse Coopers attributes the fall in value to the fact that no regional deal as big as the merger of LNM Holdings and Ispat International to create Mittal Steel.

In September 2005, Mittal Steel gained a production platform in China by completing the years biggest foreign investment in a domestic Chinese producer when it secured a 36.3 per cent stake in Hunan Valin Steel Tube and Wire for 316 million Dollars.

According to PriceWaterHouse Coopers the formation of Mittal Steel has changed the landscape of the global steel industry.

According to an estimate the group now has a production capacity of 69.1 million tonnes per year, 41 per cent more than Arcelor, it's closest rival. In April 2005, Mittal steel also reported that it expects to realise purchasing synergies of 150 million Dollars a year, manufacturing synergies of at least 60 million Dollars a year, operating synergies of 20 million Dollars a year and a one time savings of 60 million dollars from it's acquisitions of international steel group.

UNI ARB/SBJ MP PM1913