A JV between ArcelorMittal & Nippon Steel has been announced with aims to bid for Essar Steel’s assets. ArcelorMittal has announced a joint venture with Nippon Steel, a Japanese Steel Major, to acquire Essar Steel India, following the submission of a resolution by its Indian subsidiary, ArcelorMittal India Pvt. Ltd.
If the bid goes through, ArcelorMittal & Nippon Steel will hold portions of the Ruia family’s steelmaking assets in Gujarat.
“Partnering with NSSMC for Essar Steel has always been our intention and adds further strength to our offer,” chairman of ArcelorMittal, Lakshmi Mittal said in a statement. “We believe that together we can contribute our technology and knowledge to support a rapid turnaround in Essar’s performance, enabling it to increase production, enhance its product capabilities and make a meaningful contribution to the future growth of India’s manufacturing sector and the development if its economy,” the statement added.
ArcelorMittal’s bid, along with the Ruia-backed Numetal bid have emerged as leaders in the race for Essar Steel. Numetal is a special purpose vehicle (SPV) in which leading Russian bank VTB Capital, Tyazprom Export (TPE) of Russia and the Ruias hold shares.
Numetal has signed an agreement to buy 70% equity in Orissa Slurry Pipeline India (OSPIL), in a deal thats considered to give the SPV a considerable edge in the bidding battle for Essar Steel.
Inputs from ET.