The Mittal Steel Case Essay Example

Moreover, Mittal Steel shows interest in salvaging struggling businesses, aiming to increase their value and profit, although the impact on local markets may vary.

IV. Mittal Steel operates across several markets, ensuring a varied revenue stream. This diversification minimizes the company's reliance on any single market. Furthermore, Mittal Steel's global footprint grants the company some extent of influence over raw material prices within the sector. The projected industry growth also indicates potential for expansion beyond domestic borders, as demand is restricted within any individual market.

V. The acquisition of Arcelor by Mittal Steel was sanctioned in 2006. Arcelor, a European entity, was formed by merging three steel manufacturing companies from three different European countries. The management and politicians fervently protested against the merger as they considered Mittal Steel as a potential risk to their respective nations. Their hostility could have origin from the fact that Mittal Steel held no loyalities to Europe but rather, would be focused on the benefits for their own firm and not the local market. Although the apprehensions of the politicians had some validity, the shareholders of Arcelor gave their approval for the takeover. Furthermore, Mittal Steel could not be considered a foreign entity as its main office is in Rotterdam, which makes it a European enterprise.