Global steel tycoon Lakshmi Niwas Mittal’s efforts to secure a foothold in India have finally borne fruit with the Miglanis-promoted Uttam Galva Steel stating it is open to merging with ArcelorMittal. It believes that the world’s largest steel maker will take Uttam Galva to the big league.

“All options are open and the joint board will take whatever decisions are required in the long-term interests of the company.” Uttam Galva Steels Director (Commercial) Ankit Miglani, son of RK Miglani, the principal promoter of Uttam Galva, told The Indian Express over telephone from Mumbai, when asked whether his company was planning to merge with Arcelor Mittal.

He, however, said the company has not discussed this option yet with ArcelorMittal. On September 3, ArcelorMittal signed an agreement with the Rs 4,371-crore BSE-listed mid-sized Indian steel maker to pick up 20 per cent stake in the company. Its plant at Khopoli in Maharashtra produces 7.5 lakh tonnes of galvanised steel and 1 million tonne of hot- and cold-rolled coils a year.

Miglani seemed to be fascinated with the way the Mittals run their steel empire. “The biggest reason is that the promoters (Miglanis) firmly believe that Aditya Mittal has the Midas Touch. An association with this organisation will allow Uttam Galva to grow exponentially. The promoters are also looking forward to continuous support in technological enhancement and consistent raw material support from the Arcelor Mittal Group,” Miglani said. The Miglanis are not averse to tagging ArcelorMittal’s name with their company if the joint Board were to decide so. “Well this option has not been discussed, but all options are open,” Ankit Miglani said.

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