VALUE ADDING THROUGH CORPORATE DIVESTITURE: CASE STUDY FROM THE STEEL INDUSTRY

Mădălina Manu ()

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2018, vol. 12, issue 1, 21-27

Abstract: The objective of this research is to analyze a case study of divestiture from the steelmaking field, as corporations go through difficult management decisions during divestiture. In order to understand and identify value-adding opportunities for the companies, the investigation of a divestiture within a major international steel group brings up new developments in the management field. The divestment package includes the most important Romanian steel mill, which was privatized 17 years ago to the Indian buyer. Founded in 1960, ArcelorMittal Gala?i is part of the world’s leading steel group and a veteran of the Romanian economy, having a very rich history and a very important role to play in the future economic set up. Important management actions are to be taken by the newly appointed Romanian general director.The intended contribution of the research is to find how divestiture decisions can be used as a strategy to create value.The most important results refer to the inevitable business transformations and of the managerial talent to make the best of the heritage of the number one global steel group. The conclusions refer to the company’s essential goal of maximizing their value, else they are doomed to failure (bankruptcy, restructuring, etc.).

Keywords: divestiture; enterprise value; growth; management; restructuring. (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:12:y:2018:i:1:p:21-27

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