ArcelorMittal and Ispat

What connects ArcelorMittal and Ispat; besides steel of course? Rumor has it that there are talks about a merger. Some ArcelorMittal officials did visit Ispat’s steel plants.

While it is nice to see M&A news (gives some hope in tough times like these) what beats me totally is why would ArcelorMittal do something like this.

Firstly, most of ArcelorMittal’s estimates and projections have gone plain wrong. Their debt-obligations are high and there is a good possibility of the Brazilian operations going on the block. The output in Brazil has already been reduced.

While Ispat needs to sell, I’ll be utterly surprised if this rumor has any ring to it. Wait and watch on this one.