Merger of Mittal Steel & Arcelor Steel Case Study

Merger of Mittal Steel & Arcelor Steel - Case Study Example The major highlights of the transaction were, joint administration team for successful combination and deliverance of synergies, a merger of the two biggest steel companies in the world without any global rivalry, around '1.3bn (US$1.6bn) of annual synergies, the definite industry leader with extraordinary scale and diversification to manage recur ability, steady earnings and increase shareholder returns, appealing terms for all shareholders and a choice of clear investment with major re-rating prospective. The financial policy undertaken for maintaining shareholder value creation was to maintain a competent principal structure and to return the excess cash to shareholders, to sustain high returns on the capital, dedicated to investment grade credit ranking, a payout ratio of 30% dividend and unmatched financial flexibility to follow internal and external growth prospects. The vision of ArcelorMittal is to encourage consolidation in a split industry, ability to provide worldwide customers with extensive and deep product contribution, leading in all technolo