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Arcelor
Arcelor puts Shareholder Value Before Size in KryvorizhStal Auction
Oct. 1, 2005 Arcelor participated in the auction for the sale of the 93.02% stake in Ukrainian steelmaker KryvorizhStal (KMK) held by the Ukrainian State Property Fund (SPF).
Arcelor viewed KMK as a competitive cost base with access to new high growth markets which would have perfectly fitted into the Group's development strategy.
Arcelor formed an alliance with Ukraine’s No. 3 steel producer, Industrial Union of Donbass (IUD), to jointly bid for KMK. However, the alliance considered that the final auction value for the stake in KMK exceeded the price that would have created an appropriate level of value for Arcelor's and IUD's shareholders.
Arcelor CEO Guy Dollé commented, "Arcelor will continue to seek to grow through strategically compelling acquisitions; however, management will not compromise shareholder value in the pursuit of this goal. Arcelor has other opportunities to grow outside Western Europe. We remain confident that our disciplined approach is in the best interest of Arcelor's stakeholders, and we look forward to future opportunities to realize our growth strategy."
Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company — number one steel producer in Europe and Latin America — endeavors to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its global customers. Arcelor employs 95,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility.