Arcelor Mittal

ArcelorMittal
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Type	Public (Euronext: MT, NYSE: MT, BMAD: MTS, LuxSE: MT)
Founded	2006
Headquarters	19, avenue de la Liberté, Luxembourg City, Luxembourg
Key people	Joseph Kinsch, Chairman, Lakshmi Mittal, President & CEO
Industry	Steel
Products	Steel, Flat Steel products, Coated Steel, Tubes and Pipes
Revenue	$105.00 billion USD (2007)
Operating income	$10.00 billion (2007)
Employees	320,000 (2006)
Slogan	Transforming Tomorrow
Website	www.arcelormittal.com

Headquarter in Luxemburg (city)

Headquarter Luxemburg (city)

Headquarter Luxemburg (city)

ArcelorMittal (Euronext: MT, NYSE: MT, BMAD: MTS, LuxSE: MT) is the largest steel company in the world. The company was founded in 2006 when Arcelor and Mittal Steel merged. The company is headquartered in Luxembourg City, in southern Luxembourg, the former seat of Arcelor.

Organizational structure

Lakshmi Mittal (owner of Mittal Steel) is the president and CEO. Mittal's family will hold a 43.6% stake in this company. Counting all shareholders, 50.6% will be former Arcelor shareholders and 49.4% will be former Mittal shareholders.

In addition to Lakshmi Mittal as president and CEO, the Board of Directors of the company consists of eighteen non-executive members with six nominated by Mittal, three chosen independently, six nominated by Arcelor, three chosen by existing Arcelor shareholders and three employee representatives.

Business

The company is headquartered in Luxembourg, though Lakshmi Mittal works out of offices in Berkeley Square in London. In its current form, it is expected to have a planned capacity of 120 million tonnes. Its annual revenues are expected to be around $108 billion, earnings of $20 billion and market capitalization of about $96 billion and will have 320,000 employees.

Mittal invested more than 33 billion dollars to take over Arcelor. Arcelor shareholders will receive 13 Mittal Steel shares and 155.60 euros in cash for 12 Arcelor shares. Mittal Steel is also offering 13 Mittal Steel shares and 188.42 euros in cash for 12 Arcelor convertible bonds. Current Arcelor shareholders will own 50.5 per cent of the combined group and the Mittal family 43.6 per cent of the capital and voting rights. The company's profit went up by 40% after the merger.

Lakshmi Mittal

Lakshmi Mittal
Born	June 15 1950 (1950-06-15) Sadulpur, Rajasthan, India
Residence	Kensington, London
Occupation	Chairman & CEO of Arcelor Mittal
Net worth	£27.7 billion GBP [1]
Religious beliefs	Hinduism[citation needed]
Website Profile on mittalsteel.com

Lakshmi Narayan Mittal (or Lakshmi Niwas Mittal) (born June 15, 1950) is a London-based Indian billionaire industrialist, born in Sadulpur village, in the Churu district of Rajasthan, India, and resides in Kensington, London. He is the richest man in Europe and the fourth richest person in the world, with a personal fortune of US$45.0 billion according to Forbes magazine.

The Financial Times named Mittal its 2006 Person of the Year. In May 2007, he was named one of the "100 most influential people" by Time magazine.

Biography

Early years

Lakshmi spent his first years in India, living with his extended family on bare floors and rope beds in a house built by his grandfather. His family was from humble roots; his grandfather worked for the Tarachand Ghanshyamdas Poddar firm, one of the leading industrial firms of pre-independence India. They eventually moved to Calcutta where his father, Mohan, became a partner in a steel company and made a fortune.

He graduated from St. Xavier's College in Calcutta (now known as Kolkata) with a Bachelor of Commerce degree in Business and Accounting in 1969 .

Career

Lakshmi Mittal began his career working in the family's steelmaking business in India, and in 1976, when the family founded its own steel business, Mittal set out to establish its international division, beginning with the buying of a run-down plant in Indonesia. Shortly afterwards he married Usha, the daughter of a well-to-do moneylender. In 1994, due to differences with his father and brothers, he branched out on his own, taking over the international operations of the Mittal steel business, which was already owned by the family. Mittal's family never spoke publicly about the reason that caused the split.

The Mittal Affair: "Cash for Influence"

Controversy erupted in 2002 as Plaid MP Adam Price exposed the link between UK prime minister Tony Blair and Mittal in the Mittal Affair, also known as 'Garbagegate' or Cash for Influence. Mittal's LNM steel company, registered in the Dutch Antilles and maintaining less than 1% of its 100,000 plus workforce in the UK, sought Blair's aid in its bid to purchase Romania's state steel industry. The letter from Blair to the Romanian government, a copy of which Price was able to obtain, hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.

The letter had a passage in it removed just prior to Blair's signing of it, describing Mittal as "a friend."

In exchange for Blair's support Mittal, already a Labour contributor, donated £125,000 more to Labour party funds a week after the 2001 UK General Elections, while as many as six-thousand Welsh steelworkers were laid off that same year, Price and others pointed out. As well as this, Mittal has technically been residing in the United Kingdom illegally for over 14 years^{[citation needed]}, however with his political connections and adversaries it is unlikely that he will be forced to leave. Because of this, he has been included on many unofficial Wealth-indicative lists as the richest man in the United Kingdom, when in actuality, the List held by the UK and Channel Island Treasury Authority lists no mention of name "Lakshmi(or derivatives) Mittal." Corus Group and Valkia Limited were two of the primary employers in south Wales, particularly in Ebbw Vale, Llanwern, and Port Talbot..

Today

Since 2005, Mittal has been the richest person residing in the United Kingdom. He is the President of the Board of Directors and CEO of ArcelorMittal; ArcelorMittal is the world's largest producer of steel, with assets in France, Belgium, Romania, Bosnia-Herzegovina, South Africa, Poland, Czech Republic, Indonesia, Kazakhstan, Canada, Bulgaria, United States, Trinidad,Brazil and Mexico. On July 13, 2005 it was announced that he had donated £2 million to the Labour Party, and on January 16 2007 it was announced that he had donated a further £3 million.^{[citation needed]}

Personal wealth

In March 2008, Mittal was reported to be the 4th wealthiest person in the world by Forbes Magazine (up from 61st richest in 2004) up one place since a year ago. The Mittal family owns 44% of Arcelor Mittal, the world's largest steel company.

His residence at 18-19 Kensington Palace Gardens was bought from Formula One boss Bernie Ecclestone in 2004 for $128 million (£57 million), making it the world's most expensive house.

Mittal has two children. His son, Aditya Mittal, is the CFO of Arcelor Mittal. Mittal paid over $60 million (£30 million) to host his daughter Vanisha Mittal's wedding celebration in Vaux le Vicomte on 22 June 2004 and an engagement ceremony at the Palace of Versailles on 20 June 2004, the world's most expensive wedding ever. He even hosted a Bollywood night where superstars like Rani Mukerji, Saif Ali Khan, Shahrukh Khan and Aishwarya Rai performed. Kylie Minogue also sang on stage.

Mittal's house in Kensington, London is decorated with marble taken from the same quarry that supplied the Taj Mahal. The extravagant show of wealth has been deemed the "Taj Mittal."

Queens Park Rangers

Recently, Mittal had emerged as a leading contender to buy Barclays Premiership clubs Wigan and Everton. However on 20 December 2007 it was announced that the Mittal family had purchased a 20 per cent shareholding in Queens Park Rangers football club joining Flavio Briatore and Mittal's friend Bernie Ecclestone. As part of the investment Mittal's son-in-law, Amit Bhatia, took a place on the board of directors. The combined investment in the struggling club sparked suggestions that Mittal might be looking to join the growing ranks of wealthy individuals investing heavily in English football and emulating other similar benefactors such as Roman Abramovich.

Charity

After witnessing India win only one medal, bronze, in the 2000 Olympics, and one medal, silver, at the 2004 Olympics, Mittal decided to set up Mittal Champions Trust with US$9 million to support 10 Indian athletes with world-beating potential.

For Comic Relief 2007, he matched the money raised (~£1 million) on the celebrity special BBC programme, The Apprentice.

Criticism

Employees of Mittal have accused him of "slave labour" conditions after multiple fatalities in his mines.

Awards

• 2008: Padma Vibhushan
• 2007: Bessemer Gold Medal
• 2006: Person of the Year - Financial Times
• 2004: European Businessman of the Year - Fortune magazine
• 1998: Willy Korf Steel Vision Award - American Metal Market and PaineWeber’s World Steel Dynamics
• 1996: Steelmaker of the Year - New Steel

See also

• Arcelor Mittal
• List of billionaires
• Agrawal
• Nattal Sahu

External links

• Arcelor Mittal facts on TheStar.com
• Questions for the Arcelor Mittal Deal
• Timeline of the Mittal Arcelor Deal - Financial Times
• Lakshmi Nivas Mittal (Man of Steel) - MSNBC
• Google Finance: Arcelor Mittal

• Cleveland News article about Ohio Citizen Action's struggle with one of Mittal's steel mills
• Lakshmi Mittal - Heads up rich list
• ArcelorMittal website
• Article on Mittal with background on Arcelor takeover bid - Time
• Article on Mittal - Times Online
• Biography of Lakshmi Mittal
• Q&A on the "Mittalgate" scandal - BBC News
• BBC - ""Glimpsing a Fairytale Wedding"" - BBC News
• Personal information - webindia123.com
• Amevi - Photo of Mittal's new 80m (262'5") yacht, #32of World’s 100 Largest Yachts 2007 by Power & Motoryacht Magazine
• Proud to be Indian - Agarwal Today.com Report

• Arcelor Mittal — Official website
• Arcelor Mittal WebTV — Official WebTV/blog

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