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