New Delhi: Laxmi Niwas Mittal has won the long drawn battle for Arcelor. He has convinced the Arcelor board and shareholders to vote in his favour to create the world's largest steel company.
But what does this victory mean for Mittal Steel, the global steel industry and for the man himself- LN Mittal.
Chairman and CEO of Mittal Steel, Laxmi Niwas Mittal says that the steel industry needs consolidation as consolidation means sustainability.
Excerpts from CNBC - TV18's exclusive interview with Laxmi Niwas Mittal:
Q: On top of the world in all sorts of ways?
A: It is a very fantastic movement. I am very proud of what we have been able to achieve. It has been a long journey. It started from January, took lot of hurdles, problems and frustrations.
Q: Do you think there was a lot of justice here? Severstal was brought in to keep you out and in fact it might have ended up delivering it to you?
A: There have been a lot of hurdles created to frustrate our transaction. But I am very pleased that shareholders caught up on their feet and they mobilised themselves.
They asked the Arcelor Board to review and revisit their decisions, and they wanted to be given a fair chance as a shareholder.
The Severstal transaction was not very clear to shareholders; it was kind of an opaque situation. They did not understand the value; they never got to know the industrial logic and industrial rationale.
We have been working on this transaction for so many months, explaining to all the shareholders and stakeholders about the industrial logic and rationale behind this transaction.
Suddenly they saw a company Severstal, without proper full disclosures. So they got upon their feet and they protested. I think it made a big difference.
Q: But the shareholders were thinking one way, the Arcelor management was going another way. What was the reason for the disconnect? Was it the personal attitude issue?
A: I think the whole process began with emotions and there has been lot of emotional outbursts with the process.
Q: Emotional outburst against you?
A: I guess, Mittal Steel obviously.
Q: Why?
A: I think Arcelor was not expecting an unsolicited bid on the company. For them it was the price and they never looked objectively into the whole thing. It became more of a subjective decision and of emotions.
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Q: Was there a subjective view that you are an Indian?
A: I never experienced this kind of feeling. But I read lot of comments made by some of the Arcelor key management. It was quite emotional and perhaps, not required.
Q: But you will now be working with the same Arcelor Board, Guy Dolle who of course led the opposition against you, he will now manage the merger, does that sound a bit odd?
A: Guy Dolle will not be the Chief Executive of this company after the merger is done; this is what he has announced. Because of his experience , we wanted him to get involved for the smooth integration for sometime. But very soon the Board of Directors of Arcelor will consider the new CEO.
Q: You and Mr Kinch spoke a great deal about the metaphor of marriage, but many of us know that it is perhaps easier to get married than to stay married. Are you anticipating any difficulties here?
A: I do not expect problems in this integration and successful marriage. First of all, both companies have lot of experience in integration and merger.
This experience if put together with the best team and with a desire to work together to make it successful, then I don't think there would be any problems. It should be a smooth transition and integration.
Q: In the end would you call it an acquisition, merger or perhaps a reluctant merger?
A: I would call it a merger of equals. Clearly a number one and number two company merging is generally a merger of equals.
Q: Over the last five months have you lost any sleep over this?
A: In fact, I am happy I didn't lose much sleep. I could sleep well and I maintained my routine of exercising and everything, inspite of the fact that I have been busy meeting all the stakeholders, talking to the media, politicians and shareholders.
Q: What was it like at home because your wife, your son everyone is involved in the business? So do you talk steel at breakfast, lunch and dinner?
A: It is true that for the last five months this has been the major topic of discussion at home. Such a major and unique transaction is being done in the steel industry and since the whole family is involved in the business, it naturally became a topic of discussion all the time.
Q: Is there a sort of steely determination running through the family and are you looking to another acquisition; so which steel giant should start shaking thinking, here comes Mittal?
A: We have said steel industry needs consolidation, consolidation means sustainability.
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