Will Archelor-Mittal target Tata Steel?

A few weeks back we brought the news about the merger between Archelor and Mittal Steel. In-spite of the fact that the new combination controls a whopping 10% of the global steel market, they still don’t have much of a presence in the Indian and China market. The China market is out of reach due to strict restrictions of the Chinese Government. So that leaves the Archelor and Mittal with just the Indian market. Mittal had earlier signed a MoU with the Jharkhand government but that project has not progressed well for the group.

Already another steel major Posco has setup a plant in Orissa. So analysts now believe Mittal will be trying to acquire a major steel company to kick start its growth in India. Many view Tata steel as an acquisition target. Meanwhile, Tata has beefed up its board to prevent any hostile takeover. It will certainly be interesting to see if the Archelor-Mittal group can make headway in the Indian market.