ArcelorMittal Tag-Teams With Japanese Steelmaker on Essar Bid
03/02/2018 - ArcelorMittal is partnering with Nippon Steel & Sumitomo Metal Corp. (NSSMC) to acquire Essar Steel India Ltd., the steelmaker said on Friday.
In a statement, ArcelorMittal said it has formed a joint venture with Nippon Steel as part of its bid for Essar, which is being sold under Indian insolvency proceedings. Essar is one of 12 debt-laden Indian companies forced into insolvency proceedings by the country’s central bank.
"Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer,” said ArcelorMittal chief executive Lakshmi Mittal in a statement.
“We believe that together we can contribute our knowledge and technology 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 of its economy."
The joint venture is one of two groups bidding on Essar. The other is an entity led by Russia’s VTB Bank.
ArcelorMittal is interested in Essar because it would give the steelmaker a presence in India’s growing steel market.
"Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer,” said ArcelorMittal chief executive Lakshmi Mittal in a statement.
“We believe that together we can contribute our knowledge and technology 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 of its economy."
The joint venture is one of two groups bidding on Essar. The other is an entity led by Russia’s VTB Bank.
ArcelorMittal is interested in Essar because it would give the steelmaker a presence in India’s growing steel market.
