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Corporate Crisis and Restructuring

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Corporate Crisis and Restructuring of ArcelorMittal

About ArcelorMittal
ArcelorMittal is a multinational steel manufacturing corporation headquartered in Avenue,Luxembourg.It was formed in 2006 from the takeover and merger of Arcelor by Mittal Steel.ArcelorMittal is the world's largest steel producer,with an annual crude steel production of 97.2 million tones as of 2011.It is ranked 70th in the 2012 Fortune Global 500 ranking of the world's biggest corporations.
ArcelorMittal was created by the takeover of Western European steel maker Arcelor by India-based multinational steel maker Mittal Steel in 2006, at a cost of €40.37 per share, approximately $33 billion total.Mittal Steel launched a hostile takeover bid which replaced a previous planned merged between Arcelor and Severstal, which had lacked sufficient shareholder approval. The resulting merged business was named ArcelorMittal and headquartered in Luxembourg.The resulting firm produced approximately 10% of the world's steel, and was by far the world's largest steel company.Total revenues in 2007 were $105 billion.In October 2008, the market capitalization of ArcelorMittal was over $30 billion.
On 30 June 2010, the European Commission fined 17 steel producers a total of €518 million for running a price-fixing cartel, with ArcelorMittal being fined over €270 million.In 2012 the company had $22 billion of debt.As of 2012, due to overcapacity and reduced demand in Europe it had idled 9 of 25 blast furnaces.In October 2012 it permanently shut down two blast furnaces at Florange,France.On October,31,2012,the company reported a third-quarter loss of $709 million as compared to a $659 million profit for the same period a year ago, citing the slow down in China's economy.
Corporate crises of ArcelorMittal
ArcelorMittal,the world’s biggest steelmaker, reported the lowest quarterly profit in almost three years...

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