Arcelor Mittal acquired debt-ridden Essar Steel

Highlights:

  • A consortium led by ArcelorMittal, a global steel entity acquired debt-ridden Essar Steel.
  • On 19 October 2018, the lenders to bankrupt Essar Steel declared that the highest bid was from the joint venture (JV) of Luxembourg-based ArcelorMittal, promoted by Lakshmi Mittal, and Japan’s Nippon Steel and Sumitomo Metal Corp. 
  • Thus the consortium acquired the Indian steel maker and ensured that ArcelorMittal, the world’s largest steelmaker, makes its entry into Indian steel sector.
  • ArcelorMittal-led consortium had tabled a resolution plan that offered Rs. 42,000 crore to buy out Essar Steel’s assets, which had accumulated debt of over Rs. 49,000 crore. 
  • Essar steel has a 10 million tonne (mt) per annum mill in Hazira, Gujarat. 
  • The company is a fully-integrated flat steel manufacturer.