One of the great things about capitalism is that when there is enough money at stake, national prejudices fall by the wayside.

Which brings us to Mittal Steel's latest acquisition. Heather Timmons and Anand Giridharadas explain in the New York Times:

A new steel giant is being created out of a bitter battle, after Arcelor agreed today to a merger with its rival Mittal Steel in a deal valued at 26.8 billion euros, or $33.5 billion.

The merger combines Arcelor — a symbol of successful, pan-European cooperation and economic revival, with operations that span Belgium, France, Luxembourg and Spain — with a fast-growing conglomerate founded by the India-born Lakshmi Mittal, who built a fortune turning around troubled steel plants in expanding markets from Trinidad to Kazakhstan.

The deal is the latest sign that shareholder activism is reaching into the once staid boardrooms of Europe. The agreement to pair with Mittal caps a wrenching turnaround for Arcelor's board and its management, who once dismissed the idea of a merger with a "company of Indians" but were forced to backtrack after shareholders threatened to revolt.

It has also silenced politicians in Europe who once criticized Mittal, raising hope that protectionist barriers may be softening in Europe....

In the end, Arcelor's foot-dragging has led to expensive concessions from Mr. Mittal. The agreed offer is nearly 40 percent higher than his initial offer in January, which was 27 percent higher than Arcelor's stock price at the time. The sale price also represents a hefty premium to Mr. Mittal's last offer of about 36 euros a share, and to Arcelor's last trading price of 35.02 euros a share.

The fight for Arcelor was closely watched around the world, as it evolved into a clash between two major forces shaping the world economy: the ascendancy of India and China as sources of new business models and ambitious new companies, and a rising tide of protectionism in the West, fueled by anxiety that new competition will erode a way of life.

"These are all tremors of the fact that the world system, which has been maintained by the United States and Europe, has suddenly got to adjust to the rise of China and India, and it ain't going to be easy," said Kishore Mahbubani, a former Singaporean ambassador to the United Nations.

Business leaders have watched the deal closely as a bellwether for emerging-market companies seeking to acquire their slower-growing Western counterparts. Once this deal is completed, analysts expect a surge of acquisitions attempts by multinationals rooted in the developing world.

"The emerging markets are running the big surpluses, they are accumulating capital and they will be spending abroad," said Daniel Gros, director of the Center for European Policy Studies in Brussels.

The situation also spotlighted changing standards of corporate governance in Europe, where boards and management are being forced to pay attention to a growing number of activist shareholders, after decades of running companies as they pleased.

The deal will "make a very powerful statement that no matter what the games, shenanigans and interventions, at the end of the day if you're determined enough the best price will prevail," Mr. Ross said. "That is a message that has not always been clear" in European deal-making, he said.