Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 20 pages
Data source: Published sources
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https://casecent.re/p/67762
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Abstract
ThyssenKrupp AG, the largest steel company in Germany, offered to acquire the largest steel company in Canada, Dofasco Inc. Luxembourg-based Arcelor SA, the world''s second largest steel company, also intended to acquire the Canadian company. Dofasco Inc is a leading automotive steel manufacturer and supplies to the leading automobile manufacturers of the US. Arcelor and ThyssenKrupp are the suppliers of automotive steel to the European automobile industry, both intending to make a foray in the US automotive steel industry. Being a major supplier to the leading carmakers in the US, Dofasco Inc is the obvious choice for both the companies. However, analysts are sceptical whether the high price for Dofasco will be a prudent decision in the long run. The case provides scope for discussing the recent trends in the global steel industry and analyses how ThyssenKrupp plans to leverage its investment and overcome the challenges.
About
Abstract
ThyssenKrupp AG, the largest steel company in Germany, offered to acquire the largest steel company in Canada, Dofasco Inc. Luxembourg-based Arcelor SA, the world''s second largest steel company, also intended to acquire the Canadian company. Dofasco Inc is a leading automotive steel manufacturer and supplies to the leading automobile manufacturers of the US. Arcelor and ThyssenKrupp are the suppliers of automotive steel to the European automobile industry, both intending to make a foray in the US automotive steel industry. Being a major supplier to the leading carmakers in the US, Dofasco Inc is the obvious choice for both the companies. However, analysts are sceptical whether the high price for Dofasco will be a prudent decision in the long run. The case provides scope for discussing the recent trends in the global steel industry and analyses how ThyssenKrupp plans to leverage its investment and overcome the challenges.