Rediff India Abroad
 Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article
Home > Business > Message Board

Racism hindering Mittal's Arcelor bid?

February 15, 2006

Billionaire businessman Lakshmi Narain Mittal has long been looked upon as the 'King of Steel'.

His company certainly holds the crown in terms of volume, but the only thing in the way of its clearly becoming the world's biggest force in the steel sector is the French company, Arcelor.

Some days ago, Mittal Steel tried to change that. It made an audacious Euro18.6 billion (over $22 billion) hostile bid for Arcelor. If the deal went through, it would be the steel industry's biggest merger. The result would have been a company with an output three times greater than its nearest rival, and annual net profits of $7.2 billion.

But the proposed tie-up has failed to go through, so far. There is fierce opposition from the Arcelor board, as well as several European politicians. In London, a columnist for The Guardian spoke of how the bid unleashed a new wave of 'economic patriotism,' adding that Mittal and his family were often portrayed as aliens -- 'the Indians' -- rather than as global entrepreneurs.

Do you think the bid betrays the developed world's double-standards? While calling for higher foreign investment in the emerging world, it is still unprepared to open its own markets to the buying power of a foreign company. Arcelor French Chief Executive Guy Dolle went so far as to compare his company's steel to perfume, and Mittal's to mere eau de cologne.

India has accused European governments of discrimination and warned that their intervention could derail fragile global trade talks. Do you agree with the government's stance? Is the rejection of the Mittal bid a clear indication of racism? Or is this just about one company refusing to sell out to another? Tell us what you think.

Share your comments

 What do you think about the story?

Read what others have to say:

Number of User Comments: 173

Sub: Racism Policy of European Union for takeover of the Luxembourg-based Arcelor

This is totally based on racism Policy for takeover of the Luxembourg-based Arcelor .I think India should protest against wishes of European Union including France ...

Posted by Sanjay

Sub: Boycott French goods!!!!!

French companies led by Airbus have made enormous amounts of money over the past few years from Indian interests... All these deals must be scrapped.. ...

Posted by Vaibhav

Sub: The Steel Bid

Clearly the French government has taken a wrong stance on this issue. Making it a race issue whereas it is a business issue. This shows ...

Posted by vanmeet

Sub: may be hostile. but racist motive is a shame

The concern that this is a hostile takeover may be legitimate because it will result in a company with profits 3 times bigger than its ...

Posted by nanda thiru

Sub: Steel Industry Magnet Vs. French Steel Co a fight of David & Golliath.

It is long known that, RASCISM begins from POWERMONGARY, Busines is the Home of Rascism, and in EUROPE, the view to look at a Indian ...

Posted by R. Kamath



Copyright 2006 India Limited. All Rights Reserved.