m&a deals to watch

in the coming weeks, two mega-deals are on the cards in the european market.

first, mittal steel has launched an €18.6 billion hostile bid for european steelmaker arcelor. if the deal goes through, the combined entity would have an annual capacity of 122 million tonnes, three times more than its closest competitor. european regulators are resisting the takeover bid. arcelor itself is in bidding for dofasco inc., the canadian steelmaker, to expand its operations in north america.

second, german utilities company eon has launched a takeover offer of spanish utilities company, endesa. the €29.1 billion bid, if successful, will be the largest takeover bid in the utilities sector.

both mittal and eon have extensive coffers and their latest ambitions reflect their desire to expand through acquisitions rather than growth.

on a side note, hsbc, the relatively new kid on the investment banking block, is representing both mittal and eon.