Deep in the Beaux Arts Palace in Luxembourg based Arcelor Mittal Steel Group’s ongoing high-level meeting between the director of plans from all branches of the Mittal on gioi.O age 40 or 50 , they are decades of experience working in the steel industry . The only exception is for Aditya Mittal , son of the founder and Group CEO , Laskmi N.Mittal . The 31 -year-old CFO is the youngest but the most powerful in the meeting .
Aditya ‘s father is not present at the meeting , but all that behind you always have the support from the father . Over the past 10 years , father and son are both colleagues , just as your soul mate , father and son pair to become the most powerful global business today .
Time to make the hero
Mittal ‘s business strategy has not changed over the years . 1978 , Lakshmi Mittal opened the first factory in Surabaya , Indonesia . Meanwhile , despite reduced steel demand in the U.S. and Europe , but increased sharply in Asia . Lakshmi began to believe that the steel companies can gain huge profits if they grow large enough to get an equal position on the negotiating table with the iron and coal supply or with major clients such as car manufacturers .
Aditya Mittal – CFO 31 filled power of Arcelor Mittal , the son of the CEO Laskmi N.Mittal
It is also the organizing principle of this empire , reflected in the contract with Arcelor . Currently, Mittal Group may increase or decrease depending on the production needs of each region . In the long term , the group chairman said that the steel industry will be dominated by a few large companies can afford to reduce the price of the product rather than decreased during the recession .
The Aditya won contracts that are contributing to the speculation turned into reality by his father, father and son are playing an important role in the recovery of steel production industry . ” They put a steel industry become more sustainable and more attractive in the eyes of investors ,” Dalton Dwyer , Managing Director, Corporate Finance Industry company , specializes in buying and selling industrial merger , such evaluated .
Though Aditya new 30s but not the ” new kid ” in the field of steel production . From the age of 21 , he followed his father around the plant and the passionate steel molds or freshly baked batch . All forged a passion Aditya with these big metal things no less than his father .
In 2000, a major crisis took place in the steel industry led to the collapse of several companies . But Mittal has seized this opportunity to turn it into their advantage . They set up factories in Eastern Europe and Algeria without costly by taking advantage of the many governments are looking to sell expensive properties . Besides , Mittal has also received backing from the World Bank and Bank restructuring and development in Europe. Thus , they have doubled the annual output reached 30 million tons in just 2 years .
Then , in 2004 , Aditya had great success in contract acquisition of International Steel Group’s U.S. assets with values ??such as Bethlehem Steel Company , for $ 4.5 billion, to become the Mittal U.S. steel top .
The deal of a lifetime
When Aditya to the idea of ??buying Arcelor , his father did not even seem excited by the two companies had long been rivals in the marketplace . However, when that company’s share price may rise almost 40 % if the deal is successful, Aditya father he has agreed to take responsibility for this deal .
laskmi -and -son
However, a meeting with the CEO of Arcelor , Guy Dolle , results are not as expected when he refused the offer of Mittal . Just a few months later , the main event Arcelor agreed to sell 32 % stake to a Russian politician Alexey Mordashov in exchange for control of shares in Severstal steel company , Mittal cause dizziness . However, the father and son persevered Mittal pursue his ambitions .
Aditya started conducting secret meetings to lobby for the deal with the second largest steel company in Europe. And no one can doubt the capacity of the Aditya . Shahriar Tadjbakhsh , investment professionals of Goldman , Aditya commented that ” the master in the field of negotiation to get what he wants.” The Lakshmi Mittal said that ” I do not see the immaturity in Aditya . And I also feel it in the admired clever idea and convince them of .”
And indeed Arcelor is a perfect complement to Mittal by the American market , this is the investor owns the most valuable iron mines . Although the two companies scale similar but Arcelor budget for research and development 10 times Mittal , made ??for the company’s factory exceptional group of Lakshmi on the performance and quality of finished steel products . The combination of these two groups has increased market share , has brought new developments both in the name of Arcelor Mittal .