Bidder's Statement - Peabody Energy

5 Information on ArcelorMittal
5.1 Overview of ArcelorMittal
ArcelorMittal indirectly owns 40% of PEAMCoal.
ArcelorMittal is a publicly owned limited liability company (société
anonyme) existing under the laws of Luxembourg and is listed on
the stock exchanges of New York, Amsterdam, Paris, Brussels,
Luxembourg and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid and Valencia. ArcelorMittal is the world’s leading
integrated steel and mining company, with a presence in over
60 countries.
5.2 History, structure and ownership of
ArcelorMittal
(a) History
ArcelorMittal is a successor to Mittal Steel Company, a business
founded in 1976 by Lakshmi N. Mittal, the Chairman of the
ArcelorMittal Board and Chief Executive Officer of ArcelorMittal.
Since then, ArcelorMittal has experienced rapid and steady
growth largely through the consistent execution of a successful
consolidation-based strategy. After the merger in 2006 until
the first half of 2008, ArcelorMittal continued to pursue a
growth strategy. During the latter part of 2008 and all of 2009,
ArcelorMittal largely suspended mergers and acquisitions activity
in light of the deteriorating economic and market environment,
and sharply curtailed its capital expenditure and investment
activities. Merger and acquisition activity and capital expenditure
remained modest in 2010, with the exception of the acquisition
(along with a partner) of Baffinland Iron Mines Corporation, which
was completed in January 2011.
ArcelorMittal has been built on a management strategy that
emphasises size and scale, vertical integration, product diversity
and quality, continuous growth in higher value products, and a
strong focus on employee well-being and customer service. This
three-dimensional strategy is its key to sustainability and growth.
ArcelorMittal has unique geographical and product diversification
coupled with upstream and downstream integration designed to
minimize risk caused by economic cycles.
Further details can be found at www.arcelormittal.com.
(b) Ownership
As at 30 June 2011, the following entities are known by
ArcelorMittal to beneficially own more than 5% of its issued
share capital:
Beneficial owner
Percentage of issued
share capital
According to ArcelorMittal’s articles of association, a shareholder
owning 2.5% or more of the share capital must notify ArcelorMittal.
The only registered shareholder owning 2.5% or more but less than
5% of the share capital at 30 June 2011 is the Luxembourg State
with 2.5% of the issued share capital (equivalent to 2.52% of the
voting rights).
5.3 Principal activities of ArcelorMittal and
ArcelorMittal Mining
ArcelorMittal is the world’s leading integrated steel and mining
company with a presence in over 60 countries. It is the leader in
all major global steel markets, including automotive, construction,
household appliances and packaging, with leading research and
development technology, as well as sizeable captive supplies of raw
materials and outstanding distribution networks.
ArcelorMittal conducts business through six principal segments: Flat
Carbon Americas, Flat Carbon Europe, Long Carbon Americas and
Europe, AACIS, Mining (as discussed below) and Distribution Solutions.
Further details on each can be found at www.arcelormittal.com.
ArcelorMittal is the largest steel producer in the Americas, Africa and
Europe, and is the second largest producer in the CIS region, with
a growing presence in Asia, particularly China. It has steel-making
operations in 20 countries on four continents, including 65 integrated,
mini-mill and integrated mini-mill steel-making facilities. As of 31
December 2010, ArcelorMittal had approximately 274,000 employees
(including discontinued operations).
ArcelorMittal Mining has a significant and growing portfolio of
international mining assets and prospective mineral tenements, as
well as certain strategic long-term contracts with external suppliers.
In 2010 ArcelorMittal Mining produced 48.9 million tonnes of iron ore
and 7 million tonnes of metallurgical coal from its own operations.
Products from ArcelorMittal Mining operations are typically sold
under long term framework agreements to many global steel mills
and also to steel mills within the ArcelorMittal Group. ArcelorMittal
Mining currently has iron ore mining activities in Algeria, Brazil, Bosnia,
Canada, Kazakhstan, Mexico, Ukraine and the United States and has
projects under development or prospective development in Liberia,
Canada, Mauritania and India. It also currently has or participates
in coal mining activities in Kazakhstan, Russia, South Africa and
the United States. ArcelorMittal has projects under prospective
development in India and has a strategic investment in Macarthur.
ArcelorMittal Mining is one of the 4 largest producers of iron ore
worldwide.
HSBC Trust (C.I.) as trustee (with Lakshmi
N. Mittal, Usha Mittal and their children as
beneficiaries, holding ArcelorMittal shares
through Ispat International Investment, SL
and Lumen Investments Sàrl)
40.83% (equivalent to 41.15%
of the voting rights)
20