New Delhi: The Mittal-Arcelor saga finally concluded on Sunday when Arcelor gave in to Mittal's offer.
This came after a long wait but it was worth it for LN Mittal, who pursued this deal without any doubt of losing it.
While sentiments were high all-over the world, the fact that Mittal is an Indian evoked a sense of pride in each Indian's mind.
But experts feel the other way; they feel that he is a businessman who hardly has ties with India.
One would feel very proud that as an Indian he would lead the world's largest steel company.
But one is not sure how India could benefit or rather become the great economic super power because of this deal. One needs to realize that the man is Indian but his business is not and it has never been.
April 28: Arcelor re-elects its Board Arcelor answers by bringing in Severstal- the Russian conglomerate for a merger June 20: Severstal tries to woo Arcelor further June 25: The deal goes through in Mittal’s favour PAGE_BREAK
Industry watchers believe that one should feel a pinch of insult as well, since people are gloating for a man who heads the world's largest steel empire, but virtually has no interest in the Indian market. In his wisdom he has chosen to have no business links with India at all.
However, this consolidation is good and one company will now own 10 per cent of the steel market, so there could be a bit of pricing discipline. Also the deal will affect sentiments positively, and that might take stock prices up a bit higher from here on.
Investment advisor, P N Vijay agrees saying that the global development of the Arcelor-Mittal deal will be very positive for the steel sector as capacity is getting accumulated.
This will be good for the steel industry and the producers, he says.
He further states that steel prices had gained momentum from mid-March and many steel stocks have been beaten down now, but he feels that they will bounce back as the valuations on their side are good and the P/E multiples (price earning ratio) also look good.
This deal could ignite many more consolidations in the steel industry, which might finally benefit the world steel scenario, but for now there is no running away from the fact that the tie-up has mere sentimental relevance for India.
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