ArcelorMittal Says M&A On Hold Until Market Conditions Recover

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Mar 2009

ArcelorMittal (MT) has temporarily halted all merger and acquisition activity until conditions in the steel market improve, the world's largest steelmaker said Tuesday. The same applies to investment in new projects, the company said. "In light of the current economic and market conditions, ArcelorMittal has temporarily curtailed merger and acquisition and greenfield investment activity until a return to a more favorable market environment," it said in its annual report.
Mergers and acquisitions have historically been a key pillar of ArcelorMittal's strategy, with the company targeting growth through industry consolidation and synergy creation. In the past, it has also focused on growth in emerging economies through greenfield developments.
"Despite the unprecedented global economic situation which has resulted in some postponements or temporary adjustments of growth targets, the company's three dimensional strategy remains its key to sustainability and growth over the long-term," ArcelorMittal said.
"However, given the current economic challenges, the company has temporarily put its growth plans on pause, focusing instead on adapting the company to the current difficult environment," it added.
By the end of 2008, ArcelorMittal had reduced its net debt by $6 billion and aims to cut it by a total $10 billion by the end of 2010 from levels during the third quarter of 2008.

Source: Dow Jones