| Mittal: Far-sighted
Calcutta, Sept. 21: L. . Mittal (LNM) group, world’s second largest steel maker, is planning to acquire one more steel company in Poland — Huta Staly Czestochowa (HSC).
The acquisition of this plant will increase the group’s overall production of steel to over 40 million tonnes.
Confirming the move, the company spokesperson said the group had already submitted its purchase offer for the facility on August 29. The company has also expressed to the ministry of state treasury its interest to acquire the assets of Huta Czestochowa as well as the shares of HSC from TF Silesia.
The LNM group has reached an agreement with the ministry of state treasury on September 1 for the privatisation of Polskie Huty Stali S.A. (PHS). The total consideration is stated to be around £630 million.
The spokesperson has said the group is now in talks with the trade unions of PHS about a social package.
At present, the Calcutta born non-resident Indian L. . Mittal has steel facilities in over 12 countries with an aggregate production of 38 million tonnes, much more than India’s overall production.
Mittal, known as a ‘turnaround business baron’, hopes to make the Polish firms profitable once the management takeover is completed.
According to sources, Mittal is also in talks with a senior executive of the Steel Authority of India Ltd (SAIL) to lead the group’s business interest in Poland.
The company spokesperson, however, said the decision on who would lead the firm in Poland was yet to be taken.