Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
Share a link:
https://casecent.re/p/19209
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
With the acquisition of the US-based International Steel Group (ISG) for $4.5 billion, Lakshmi Mittal (Mittal) Chairman of Ispat International is poised to become the head of the world''s largest steel company. This is Mittal''s second acquisition in the US, the first being Inland Steel (in 1998). Mittal is keen to integrate his US mills to achieve economies of scale, negotiate better prices from the suppliers and guarantee customers a stable source of supply. Mittal hopes to realise savings and revenue gains worth $1 billion a year. Unlike Mittal''s previous acquisitions, ISG has already gone through a major cost-cutting exercise. Analysts wonder whether Mittal will be able to add much value to the acquisition.
About
Abstract
With the acquisition of the US-based International Steel Group (ISG) for $4.5 billion, Lakshmi Mittal (Mittal) Chairman of Ispat International is poised to become the head of the world''s largest steel company. This is Mittal''s second acquisition in the US, the first being Inland Steel (in 1998). Mittal is keen to integrate his US mills to achieve economies of scale, negotiate better prices from the suppliers and guarantee customers a stable source of supply. Mittal hopes to realise savings and revenue gains worth $1 billion a year. Unlike Mittal''s previous acquisitions, ISG has already gone through a major cost-cutting exercise. Analysts wonder whether Mittal will be able to add much value to the acquisition.