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In much of Europe, Mittal’s move was viewed as a rough attempt by “new” India to take on “old” Europe. French finance minister Thierry Breton accused Mittal of having “a grammar problem”. Luxembourg Prime Minister Jean-Claude Juncker was ready for war: “This hostile bid by Mittal Steel calls for a reaction that is at least as hostile.” Arcelor CEO Guy Dollé worked hard to encourage public opposition, dismissing Mittal as a low-grade operator specialising in buying up obsolete installations at low cost.
When Mittal found — totally unexpected — support from Indian politicians, who dared the West to play foul in the steel super bowl, Arcelor entered into a last-ditch strategic tie-up with Russia’s Severstal to thwart
Mittal. But the Europeans had got it all wrong: when the world’s third richest man — after Bill Gates and Warren Buffet — proposes marriage, you don’t turn him down. Mittal was prepared to bid higher. In June,
Mittal, whose fortune is estimated at $27 billion, hiked his offer by 10 per cent to an eye-popping $32.4 billion. Despite all the
sabre-rattling, France and Luxembourg could do little to block the deal as 85 per cent of the company is traded freely on the stock market.
In late June, the Arcelor board went into a marathon huddle. Ending months of hostility, Arcelor decided to accept the takeover offer, a move that will create the world’s largest steel entity to be called Arcelor
Mittal. The union of the two top steel makers will create a company with nearly a 10 per cent share of global production, employing more than 320,000 people.
Arcelor chairman Joseph Kinsch said his board unanimously backed the new offer. “We concluded Mittal Steel's was a better offer than that of
Severstal,” he said. Even the politicians were saying cheese. Luxembourg economy minister Jeannot Krecke told reporters: “We are very happy with the situation.”
Mittal is not quite the takeover shark he has been portrayed as. According to him, “I have seen the steel industry for the over 30 years,” he says. “It has become increasingly clear to me that there is too much flab and fragmentation and too little attention to lowering cost of production. Other industries like aluminum and auto have seen the virtues of
globalisation. Now it is time for steel.”
With Arcelor in his pocket, there aren’t too many targets left for the tycoon but Mittal is unlikely to lie low for long. He may not court the media but he has managed to make headlines. Two years ago he acquired the UK’s Kensington mansion, said to be the world's most expensive home, from Formula One racing's Bernie
Ecclestone. In 2004, he made headlines when he threw a $70 million wedding bash for daughter
Vanisha. It included an engagement ceremony at Paris' Tuileries Gardens featuring an opera and banquet at the French royal palace at Versailles.
When Mittal first popped up on the radar screen of the international media after acquiring Chicago-based Inland Steel in 1998, the Wall Street Journal called him the Carnegie from Calcutta. He became several times bigger than the 103-year-old US's steel legacy of Andrew Carnegie with his acquisition of Ohio-based International Steel Group in a deal worth $17.8 billion.
Steel analysts round the world are hoping that his juggernaut keeps rolling on.
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