Two Indian steelmakers made two big ticket acquisitions. The first by ArcelorMittal, followed quickly by India's largest private sector steelmaker Tata Steel.
By 2014, the unwinding of assets and write¬offs began as both deals turned sour. The global steel industry buffeted by global headwinds and affected severely by the economic downturn in Europe and the US, alongwith excess capacity in China which triggered dumping of cheap steel flooding the world market. The steel industry since then has been hammered by roiled with benchmark steel prices (hot rolled coils) which were quoting at $550¬575 per tonne in 2007, now available in 2016 at about $380 per tonne.
ArcelorMittal
January 2006 ¬ Lakshmi Niwas Mittal's Mittal Steel announces $23 billion bid for Arcelor
May 2006 ¬ Sweetens bid by increasing the offer by 38 per cent to $32 billion
June 2006 ¬ Mittal Steel acquires Arcelor to emerge as largest steel company in the world ending one of the most publicized and controversial deals in corporate history. New company, ArcelorMittal, controls 10 per cent of global steel production
2011 ¬ Splits off stainless steel division as a new company, Aperam
2012 ¬ Low demand and excess capacity led it to idle 9 of 25 blast furnaces
October 2012 ¬ permanently shuts down two furnaces at Florange, France
December 2012 ¬ Writes down the goodwill in its European businesses by approximately $4.3 billion
September 2014 ¬ ArcelorMittal and its partner Gerdau Ameristeel sell off stake in Gallatin Steel to Nucor Corp for $770 million
November 2015 ¬ ArcelorMittal South Africa receives a bailout from government to prevent plant closures in two towns, including facility at Vanderbijlpark which employs 4,500 people March 2016 ¬ Shuts down plant at Point Lisas, central Trinidad
March 2016 ¬ Decides to sell off LaPlace and Vinton Carbon facilities in US to affiliate of Black Diamond Capital
Tata Steel October 2006 ¬ Corus Group announces it has accepted an $8.1 billion offer from Tata Steel at £4.55 per share Corus (18 MT)¬Tata Steel (4.4 mt) combine to emerge as 5th largest global steel company.
Source: Economic Times