'It can position itself as a China Plus One solution, fulfilling the demands of developed economies.'
The US steel industry has urged the Bush Administration to defy the WTO ruling and continue protection for it despite the certainty that the EU and other countries may retaliate if the US does not comply.
This action would affect approximately 3,500 employees over the indefinite period at US Steel's Keewatin, Detroit and St Louis plants, the company said. According to the company, due to continuous business review, analysis of market conditions and their impact on customers' orders, it had to take further steps to consolidate operations.
The US acquisition comes barely three days after Essar Global announced its acquisition Canadian firm Algoma Steel for $1.58 billion (Rs 6,900 crore).
The US economy is in danger of sliding further into recession and taking down finances of towns and cities with it.
After a string of foreign deals in the last few years, including Tata Motors' purchase of Land Rover and Jaguar brands from Ford for $2.3 billion this year, attempts by Indian companies to acquire assets abroad are increasingly hitting roadblocks. At least, the recent attempts by Indian companies suggest so.
Ruias controlled conglomerate Essar on Thursday withdrew its $1.2 billion bid for acquisition of US steel company Esmark in the face of a higher bid by Russian steel giant Severstal which is supported by the Union. Essar has raised its bid from $17 dollar to $19 a share, but Severstal came up with a higher bid of 19.25 dollar per share. Severstal has got the support from the Unions of the US steel company, sources said.
India's economy could also suffer some ill-effects without necessarily triggering retaliation via higher tariff barriers against Indian goods, says Devangshu Datta.
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