Consolidation not over; India, China next aim for Mittal

Luxumbourg, June 26 (UNI) Indian-born Lakshmi Niwas Mittal, who has won the five-month-old hostile battle with Europe's Arcelor to create the world's largest steel conglomerate, today said global consolidation is far from over and three years from now, he could set his eyes on India and China.

''I am confident that once the Mittal-Arcelor deal is complete, it would entail more consolidation for steel companies. In the next 10 years, we should have two companies with a 150 tonne capacity or more'', Mr Mittal said in his joint press conference with Arcelor Chairman Joseph Kinsch.

The combined capacity of US-dominating Mittal Steel and the European giant Arcelor would be 110 million tonnes, that would gross in a revenue of 70 billion Euros.

Nippon, Posco, JFE and Severstal would remain the dominant players in the world steel scenario besides those in other emerging markets like India and China.

For now, Mr Mittal said he would like to concentrate and ensure that the new entity, in which he would hold a personal equity of over 43 per cent, would leverage the geographical and strategic advantages of both Mittal Steel and Arcelor.

He has set a time-frame of six months for the ''smooth and efficient integration'' of the number one and number two steel-makers of the world.

Significantly, Arcelor President and CEO Guy Dolle would step down from his post but would have a right to suggest the name of his successor, Mr Kinsch said. ''Mr Dolle has said that he would not be incharge in order to give someone else the opportunity to work on restructuring of the group''.

Arcelor-Mittal, as the new entity, would be christened and would have six nominations from each side of the Board of Directors, with the shareholders nominating three members. Mr Mittal would be the board President and Mr Kinsch would be Chairman.

Mr Mittal said that for three years, he would like to work for the consolidation of Arcelor-Mittal and then would focus on the emerging markets of China and India. ''After three years, Arcelor-Mittal will focus on the emerging markets of China and India''.

Analysts say that three years from now India will have increased capacity in excess of 50 million tonne with big firms like Posco setting up units.

Mr Mittal, however, ruled out a three-way merger with Russian steel giant Severstal saying the deal would not be in the interest of shareholders.

''There will not be any three-way merger with Severstal as it is not in the interest of the shareholders and is not investor friendly,'' he said.

''Notwithstanding reasons, business is not very complex. We have an industrial approach towards it and we keep it vis-a-vis Severstal. We are active in many countries and we benefit from the different cultures of these countries,'' Mr Kinsch said.

Eds: Here pick up suitably from earlier series.

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