Essar Steel declares ArcelorMittal and NSSMC's joint acquisition partner as the Successful Applicant
Nippon Steel & Sumitomo Metal Corporation, with ArcelorMittal, has engaged in acquisition procedures aiming at jointly acquiring and managing Essar Steel India Limited.
On 25th October, ArcelorMittal India Private Limited, a subsidiary of AM and the resolution applicant, has been declared the successful applicant by ESIL's Committee of Creditors. The acquisition will be implemented subject to the approvals of Indian National Company Law Tribunal and other relevant authorities.
India is one of the most promising markets in the world with significant growth potential in the medium- and long-term and where domestically produced steel products have a superior position. In order to further expand and strengthen The Company’s global business, NSSMC has been seeking opportunities to engage in integrated steel production in India to steadily capture the growing demand for steel products, which is expected to increase along with the development of infrastructure.
ESIL is one of the major steel companies in India, which has a fully integrated steelworks located in its west coast region. ESIL manufactures and sells steel sheets, plates, and pipes through its extensive domestic sales channels. It also owns pellet plants in the east part of India.
NSSMC and AM have established a close cooperative relationship for many years through their global strategic alliance and have been jointly managing three companies in the United States (AM/NS Calvert, I/N Tek, and I/N Kote). NSSMC believes that, by bringing together the strengths of both companies, NSSMC and AM will be able to turn around ESIL to be a competitive steel manufacturer and contribute to further development of Indian steel industry and Indian economy.