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India has never been
central Mr Mittal's plans. His companies
are based off-shore and steel manufacturing
in India has not been his principle goal.
Indeed in the last decade most of Mr Mittal's
acquisitions have been overseas. Even in
the UK, although he may reside in one of
the finest mansions in London's Mayfair,
and call the British Prime Minister his
friend, Mr Mittal has done little for British
Steel manufacturing or even the British
Asian community. He pays few taxes in this
country and uses his money to wield influence
for his own gain. He was shocked at the
negative media reaction when Prime Minister
Tony Blair intervened on his behalf with
the purchase of Sidex in Romania - in spite
of having much to say about his donation
to the Labour Party and still failing to
understand the British repugnance for a
"politicians for hire" scenario.
Now, it seems he wants Indian political
help.
Mr Mittal claims that
the Arcelor bid "is not an individual
issue connected to the Mittals but a larger
issue". O really? Perhaps Mr Mittal
can elaborate. I fail to understand how
India would benefit from Mr Mittal owning
a European steel maker. Would he make it
a policy to hire Indian staff for example?
Would he move production to sites in India?
Or it just the tenuous offer of continued
supply of steel for growth economies like
China and India? The latter could just as
readily be met by Arcelor's existing owners.
And even if there is an impact between the
two trading nations: France and India, who
will be the real winner, India or Mr Mittal?
Mr Mittal has claimed
that he "regretted racist comments
about the bid (by Arcelor Chief Guy Dollé)
and hoped that they were not really meant",
which makes me wonder whether he understands
the state of race relations in France. Where
was he when pressure was being placed on
French Politicians about the issue of wearing
the hijab in Schools? Where was he when
there were violent protests about the ghettoisation
of France's Muslim community? Where was
he when French newspapers re-published the
Danish cartoons inciting violent protests
and mayhem? Did he use his political influence
for raise any of these issues? Racism has
an ugly face and perhaps Mr Mittal could
have woken up to it a little earlier.
And I'm not really
sure that his case is one of racism. If
as Mr Mittal claims "you have to look
at the business as a business", then
one can readily understand why Arcelor,
the world's second largest steel producer
and employer of 78,000 people (22,000 of
them in France) has so readily spurned the
bid. It does not take much business sense
to figure out that cost savings - i.e. sackings,
redundancies, closure of sites and sell-off
of sideline businesses - are one of the
key benefits of the merger. Dress it up
any way that you like, Mr Mittal would not
be interested in Arcelor if there were no
"economies of scale" to be had.
Given France's fervour in protecting its
industries, one can understand why Mr Mittal
is getting such short shrift. Mr Mittal
might like to think that "individuals
and emotions don't count" when it comes
to business, but for steel workers it is
likely to be all about individuals and emotions.
Mr Mittal's approach
to Arcelor has been surprisingly gung-ho.
Jacques Chirac said that Mittal Steel's
"hostile bid had been made contrary
to practice, with no prior explanation and
no reason given on a large European Company".
Mr Chirac also added that "it is the
right of Europeans to care about the jobs
and their future. We have absolutely nothing
against a non-European bidding on a European
company". Mr Mittal sourly replied
that Netherlands-based Mittal steel was
a European company!
I was also somewhat
amazed by Mr Mittal plaintive bleating about
how Arcelor chief Guy Dollé was hostile
to the bid, to the point of hanging up on
him on the phone. Inviting your opponent
to a meal, listening to his rejection of
our idea and then wondering why he won't
return your calls is hardly surprising.
And given that Lakshmi Mittal has dealt
with a host of fierce opponents - from cold
war regimes to gangs, surely he was prepared
for the hostility?
Mittals' track record
and tenacity may succeed in the end, but
he hardly needs Indian help or our sympathy
in his relentless task to corner the world's
entire steel production. If intent on global
domination, he could befriend that community
that he hails from and any that he aspires
to, making their problems his own and engaging
in their politics.
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