...How Lakshmi Mittal Created Arcelor Mittal Steel and became a Billionaire The story of Lakshmi Mittal is such an inspiring story. Though he didn’t make our list of school drop out billionaires; he’s been nicknamed “Carnegie of Calcutta” after the 19th-century American drop out railroad tycoon; Andrew Carnegie. His story is that of a man, who rose from nothingness to join the coveted Forbes list of world’s richest top ten billionaires. He achieved this feat by creating ArcelorMittal; the biggest steel company in the world, worth over £100bn. Let me also bring to your notice that this Indian-born steel tycoon is the wealthiest man in Britain, with an estimated fortune of £30bn. He is also well connected to rich and powerful men such as Nicolas Sarkozy, Bernie Ecclestone, Tony Blair and Bill Clinton. Lakshmi Mittal was born in 1950 in a small town in India called Sadulpur, in Rajasthan. Being the eldest of five children, his parents decided to name him Lakshmi after the Hindu goddess of wealth. At the age of six, his family moved to Calcutta, where his father gained employment in a small British steel company. This gave the family the brevity to set up their own business, but it turned out to be quite challenging and tough. While his father worked night and day to build their new business, Lakshmi Mittal, who happens to be a shy and introverted teenager graduated from a Jesuit college, St Xavier’s. Mittal surprised everyone, including his parents by receiving excellent grades...
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...telecom provider in the Nordic region to a trend- setting international player in Eurasia markets? 1. Entering The Himalayas, Uzbekistan, and Afghanistan 2. China, India, Sri Lanka, Japan, Philippines 3. What are the drivers of this success? 3. Institutional View 4. Resource View 4. What are the future opportunities? 5. What are the potential risks? 6. How can TeliaSonera increase its market power and extension in Eurasia markets? SECTION 1: TeliaSonera’s history tells the story of a young company with long standing traditions. It is a history of a company providing their customers and their society with the best services and newest technology. TeliaSonera was created in 2002, by the merger of Swedish Telia and Finnish Sonera, it was the first time in history where two former telecom incumbents in two European Union countries joined forces to form a new, stronger company. It united two companies who were excellent complements to each other, both from a market and financial perspective. The companies had already worked together on a number of different projects. TeliaSonera is now the largest Nordic and Baltic fixed-voice, broadband, and mobile operator by revenue and customer base. It operates Europe's largest and fastest-growing wholesale IP backbone AS1299 and is the 10th-largest global mobile group by consolidated customers. TeliaSonera also is the fifth largest telecom operator in Europe today and continues building...
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...Integrated Oil Industry OverviewDrivers of Merger | | 3 | Strategic Fit | | 4 | Valuation of Merger | | 5 | Valuation of Synergies | | 6 | Deal Structuring | | 7 | Effect on shareholders | | 8 | Factors leading to merger’s success | | 9 | Anti-Trust Concerns | | 10 | References | | 11 | Appendix | | Executive Summary The Exxon-Mobil merger of 1998 makes for an interesting Mergers & acquisitions discussion as one of the largest mergers in the history of Oil and Gas industry. The merger took place as the industry was undergoing a phase of rapid consolidation. Operational efficiency, oil reserves in emerging economies, constantly dipping oil prices and challenges in downstream operations were the defining factors of the landscape and drivers behind the merger. The success of the merger lies in the significant synergies derived , whether it be complementary asset locations, different competencies and stronghold over different geographical locations. The near term operating synergy was a whopping $2.8 billion. Risks however existed in terms of meeting anti-trust and regulatory concerns, retention of personnel and cultural differences. Exxon-Mobil post the merger would gain an exorbitant market share in key locations which would have a bearing on fair competition. This led to FTC handing out strict compliance requirements. However, with intense efforts by the leadership at these two companies, the merger has gone down in history as one of the...
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...recognition in India. It also has a100% export oriented manufacturing unit of instant tea in the Indian state of Kerala which happens to be the largest such facility outside the US. Here is a brief history of the company: Tata Tea acquired Tetley in the first ever-leveraged buyout (LBO). This largest cross border acquisition by an Indian company made it the world’s 2nd biggest tea company with the combined turnover worth INR2800 – 2900 cr leading to its aggressive growth and worldwide expansion. The merger proved beneficial for Tata Tea as it slowed its main competitor (in India) HLL’s share (Hindustan Lever limited, a Unilever subsidiary), which was gaining a major market share. Tata Tea Before merger: Post merger Scenario: The right moves at the times Though Tata Tea ranks among the smaller of the Tata companies, yet it has been the most internationally active one. It made the world stand up and notice it when it acquired Tetley, a company nearly twice its size, in a risky leveraged buyout in 2000 Its second major highlight was when it acquired superior water maker Energy Brands Inc, USA (Glaceau) in 2006 that was the largest overseas acquisition by an Indian company at that time. It then sold its stake to The Coca-Cola Company nine months later, for almost double of what it had paid netting an impressive profit of over $ 500 million, successfully silencing all its critics...
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...countries. Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy with a number of significant acquisitions ArcelorMittal is the successor to Mittal Steel, a business originally set up in 1976 by Mr Lakshmi N Mittal, chief executive officer and chairman of the board of directors. ArcelorMittal was created through the merger of Arcelor and Mittal Steel in 2006. Mittal Steel’s rapid growth since 1989 has been the result of combining a successful consolidation strategy with a number of significant acquisitions. Since setting up operations in Trinidad and Tobago in 1989, some of its major acquisitions are Siderurgica del Balsas (Mexico) in 1992, Sidbec (Canada) in 1994, Karmet (Kazakhstan) and Hamburger Stahlwerke (Germany) in 1995, Thyssen Duisburg (Germany) in 1997, Inland Steel (US) in 1998, Unimetal (France) in 1999, Sidex (Romania) and Annaba (Algeria) in 2001, Nova Hut (Czech Republic) in 2003, BH Steel (Bosnia), Balkan Steel (Macedonia), PHS (Poland) and Iscor (South Africa) in 2004, ISG (US), Kryvorizhstal (Ukraine), as well as a significant interest in Hunan Valin Steel (China) in 2005, and three Stelco Inc. subsidiaries (Canada) in 2006. Recently, ArcelorMittal, together with its partner Nippon Steel and Sumitomo Metal, acquired ThyssenKrupp's Calvert facility in the US. This is a strategic acquisition for ArcelorMittal, demonstrating the company’s industry...
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...world-class talent requires a true partnership with a trusted outside advisor. Maximise your exposure to the global executive talent pool and fully leverage the experience of our executive search consultants. We are the only consulting firm with our own non-commercial online Job Portal www.universalhunt.com. We have built a databank of more than 4 Million candidates over a period of time, which allows us absolute success in any mandate in shortest time span with 100% client satisfaction. We serve more than 900 international clients across all sectors and industries. We have clients in UK, Germany, Belgium, South Africa, Netherlands, Singapore, India, United Arab Emirates, Saudi Arabia, Bahrain, Oman, Qatar, Yemen, Libya, Tanzania, Kazakhstan, Tunisia, Jordan, Nigeria, Kenya and Malaysia, Uganda, Hongkong, Australia, USA and many other countries. Specialties Executive Search, Interim Management, Turn Key Recruitment, Corporate Training, Resume Writing Service Universal Hunt Private Limited, an International Business Consulting company with clientèle from various sectors and industries, in countries across Middle East, Africa, Europe, USA and South East Asia. Universal Hunt specializes into Human Resource Solutions, Investment Banking, Engineering Consulting and Information Technology domains. With extensive network of international clients and domain expertise across...
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...company would also possess leading positions in other commodities in power generation and agricultural products. Summary Glencore is a company which operates in commodity markets, including mining. The company engages in both industrial activity and marketing, which allows it to safeguard against volatilities in an individual market. Further, by engaging in marketing, the company is able to adapt more effectively to adverse conditions. Glencore has demonstrated value creation in its acquisitions, with notable acquisitions including Kazzinc and Viterra. The company’s size also now allows it to negotiate big contracts, as it did with Rusal. Glencore was fast tracked into the London FTSE stock exchange during its initial public offering (IPO) in May 2011, the first company to do so in 25 years. Xstrata is a mining company which profited from Glencore spinning off its thermal coal assets, and has grown to incorporate many metals, with a decentralized strategy with expansion through acquisitions. The company has also focused on organic growth...
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...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
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...Analysis Inditex Group Unit Introduction- GBO Group Award: Global Trade and Business SCN: 0137219061 Candidate’s Name: Cristina Diaz Alama HND Centre Xianda College of Economics and Humanities Shanghai International Studies University Date: 2013/10/08 Assessment 1 Select a Global Business Organization and describe its development from inception through to its present status as a global trader. Describe its expansion including any global acquisitions and mergers, and its business structure- whether centralized or decentralized. 1. Introduction Industria de Diseño Textil, S.A. (Inditex) is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain. It is made up of almost a hundred companies dealing in activities related to textile design, production and distribution. Amancio Ortega, Spain's richest man, and the world's third richest man, is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. Inditex operates over 6,000 stores worldwide and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius, Zara, Tempe and Uterqüe, and also a low-cost brand Lefties. The majority of its stores are corporate-owned; Franchises are only conceded in countries where corporate properties can not be foreign-owned (in some Middle Eastern countries, for example). The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores. Most...
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...Customize View Search: View: Current Investment Prior Investment Current Subsidiary/Operating Unit Prior Subsidiary/Operating Unit Merged Entity Current Investment Arm Prior Investment Arm Pending Acquisition/Investment Cancelled Acquisition/Investment Group By: Investments Company Name Relationship Type Primary Industry Last Investment Date LTM Total Rev. ($mm) LFQ Total Assets ($mm) LFQ Total Debt ($mm) Period End Date Cuadrilla Resources Holding Limited Pending Acquisition/Investment Oil and Gas Exploration and Production Feb-16-2010 - - - - Website: There is no website for this company Business Description: Cuadrilla Resources Holding Limited operates as an oil and gas exploration and production company. The company was founded in 2007 and is based in the United Kingdom. Investment Coverage: - Relationship with Investor/Parent: Total Investment ($mm): - Expected Exit Date: - Percent Owned (%): - Return on Investment (%): - Controlling Interest: - Investor Notes: - Transactions: Date: Feb-16-2010 Type: Private Placement Size ($mm): 58.00 Status: Announced Eagle Energy, LLC Pending Acquisition/Investment Electric Utilities Dec-21-2009 - - - - Website: www.eagleenergyllc.com Business Description: Eagle Energy, LLC provides alternative energy supply, and electricity and natural gas consulting and aggregation services to commercial, industrial, and governmental entities. The company also offers...
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...Analysis Inditex Group Unit Introduction- GBO Group Award: Global Trade and Business SCN: 0137219061 Candidate’s Name: Cristina Diaz Alama HND Centre Xianda College of Economics and Humanities Shanghai International Studies University Date: 2013/10/08 Assessment 1 Select a Global Business Organization and describe its development from inception through to its present status as a global trader. Describe its expansion including any global acquisitions and mergers, and its business structure- whether centralized or decentralized. 1. Introduction Industria de Diseño Textil, S.A. (Inditex) is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain. It is made up of almost a hundred companies dealing in activities related to textile design, production and distribution. Amancio Ortega, Spain's richest man, and the world's third richest man, is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. Inditex operates over 6,000 stores worldwide and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Stradivarius, Zara, Tempe and Uterqüe, and also a low-cost brand Lefties. The majority of its stores are corporate-owned; Franchises are only conceded in countries where corporate properties can not be foreign-owned (in some Middle Eastern countries, for example). The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores. Most...
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...Introduction There is a rising trend outward FDI (OFDI) from emerging market, mostly dominated by countries such as China and India (Gao, Liu, & Zhou, 2013). China’s outward FDI increased from $27 billion in the year 2000 to $230 billion by the end of the year 2009. Since the late 1990s, India’s OFDI has increased to $77 billion by the end of the year 2009 (Buckley, Forsans, & Munjal, 2012). Porter’s national competitive advantage emphasizes productivity growth as the focus of success in international trade. John Dunning went on to explain in detail the drivers of OFDI using his eclectic theory of ownership, location, and internalization advantage including four major motives: market-seeking, resource-seeking, efficiency-seeking and strategic asset seeking (Gao, Liu, & Zhou, 2013). Market seeking Firms aim to capitalise on ownership of well-established brands, marketing skills and overseas distribution networks by seeking large foreign markets (Buckley, Forsans, & Munjal, 2012). Since China’s WTO accession, because of over-capacity in some sectors, Chinese manufacturers have started to invest in developed countries as well as in developing countries. Shanghai Automobile Industry Corp. bought over 50 percent stake in Korean Ssangyong Motor Co. in 2004, and TCL acquired the colour TV manufacturing from French Thomson in 2004 in order to expand their markets and achieve economies of scale. CDC Software, a wholly owned subsidiary of Chinese CDC Corporation, acquired...
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...THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY THE INTERNATIONAL OIL COMPANIES BY AMY MYERS JAFFE WALLACE S. WILSON FELLOW IN ENERGY STUDIES JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RONALD SOLIGO, PH.D. PROFESSOR OF ECONOMICS, RICE UNIVERSITY RICE SCHOLAR, JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY PREPARED IN CONJUNCTION WITH AN ENERGY STUDY SPONSORED BY JAPAN PETROLEUM ENERGY CENTER AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOVEMBER 2007 International Oil Companies THIS PAPER WAS WRITTEN BY A RESEARCHER (OR RESEARCHERS) WHO PARTICIPATED IN THE JOINT BAKER INSTITUTE/JAPAN PETROLEUM ENERGY CENTER POLICY REPORT, THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS. WHEREVER FEASIBLE, THIS PAPER WAS REVIEWED BY OUTSIDE EXPERTS BEFORE RELEASE. HOWEVER, THE RESEARCH AND THE VIEWS EXPRESSED WITHIN THIS PAPER ARE THOSE OF THE INDIVIDUAL RESEARCHER(S) AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOR THOSE OF THE JAPAN PETROLEUM ENERGY CENTER. © 2007 BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY OF RICE UNIVERSITY THIS MATERIAL MAY BE QUOTED OR REPRODUCED WITHOUT PRIOR PERMISSION, PROVIDED APPROPRIATE CREDIT IS GIVEN TO THE AUTHOR AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY. 2 International Oil Companies ABOUT THE POLICY REPORT THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY...
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...both inbound and outbound foreign investment to increase business exposure to global competition. R E A S O N E D I N D E P E N D E N T While foreign direct investment has been a controversial issue in Canada, the reality is that Canada’s openness to world capital flows, both inbound and outbound, is not impressive by world standards. This lack-lustre performance is problematic considering the net benefits derived from greater access to global capital and technology markets. Emotions on the issue run high. Sharp increases in the number and size of mergers and acquisitions by foreign investors, like those involving Falconbridge, Inco, Alcan and Cognos, have raised fears of Canadian industry being hollowed-out by foreign corporations operating in their own interests and against those of Canadians. These fears, in 2007, led to calls for then-Industry-Minister Jim Prentice to consider blocking more cross-border acquisitions, to which he responded by launching a Competition Policy Review Panel. What are the smart policy responses for Canada? To consider that question, this e-brief examines the broader context of investment flows, which suggests Canada should, in fact, be concerned about low levels of both inbound and outbound investment. While inbound investment into Canada sharply picked up in the first...
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...Policy Brief to address the issue of South Korean access to rare-earth minerals Eleonora Nam 201232133 "China controls about 95% of the global supply of rare-earth minerals, which are used in everything from consumer electronics to batteries to defense systems. In recent years the government has reduced its export quotas to secure greater control over prices...China's export restrictions on rare earths have been the focus of the international policy and market pressures in recent months." - Wall Street Journal Issue: China is the "world leader" in the reserves and "production" of rare earth minerals - raw material for the production of metals. It produces 95-97% of all rare earth elements on earth. Moreover, China does not allow the export of rare earth elements as raw materials, only finished products that are made in China. China's monopoly power in the REE market allows to influence "international affairs". As Elliot Brennan pointed out, with the increasing demand, reduced exports of Beijing in recent years is forcing high-tech companies to move to China and governments to invest in their "exploration" and "production." Most importantly, this power allows China to manipulate the prices of the rare earths, for the demand is increasing each year. Nowadays, none of the technology industry can do without the use of the rare earths, which are necessary for the production of products such as smart phones, wind turbines, batteries for electric vehicles, as well as...
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