Mittal Steel Merged Arcelor

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Arcelormittal
Mittal Steel merged Arcelor * Theory A merger occurs when two companies combine to form a distinct company. A merger is very similar to an acquisition or takeover, except that in the case of a merger existing stockholders of both companies involved keep hold of a shared interest in the new company. When combining two or more companies in order to become one. Generally, by offering the stockholders of one company, securities in the acquiring company in exchange for the surrender of their stock. Since majority of mergers do not succeed, they are usually kept as a secret from the general public till its process is completed and often from the majority of employees.

Types of mergers
Horizontal Merger
This merger involves the combining of two companies that are in direct competition with one another. In other words, they are trying to sell the same product to customers who are in a common market.
Vertical Merger
This type of merger involves a customer and a company or a supplier and a company merging. Imagine a baseball bat company merging with a wood production company. This would be an example of the supplier merging with the producer and is the essence of vertical mergers.
Market-extension Merger
This involves the combination of two companies that sell the same products in different markets. A market-extension merger allows for the market that can be reached to become larger and is the basis for the name of the merger.

Product-extension Merger
This merger is between two companies that sell unlike products, but somewhat linked products, in a common market. This allows the new, larger company to pool their products and sell them with greater success to the already common market that the two separate companies shared.
Conglomeration
A conglomeration is one of type the merger of two companies that have no correlated products or markets. In short, they have no familiar business ties.

The introduction to the business

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