ArcelorMittal to close Essar Steel deal by December-end

Our Bureau Mumbai | Updated on November 19, 2019

File photo   -  Reuters

ArcelorMittal expects to close the deal to acquire Essar Steel by end of December. The Supreme Court recently upheld ArcelorMittal, Nippon Steel and Sumitomo Corp’s resolution plan for Essar Steel. The Lakshmi Mittal-backed company and the Japanese steel major have offered ₹42,000 crore in upfront cash to creditors to settle outstanding debt.

In a statement issued to the Luxumberg Stock Exchange, ArcelorMittal said following receipt and review of the formal written order, ArcelorMittal India’s resolution plan for Essar Steel has been unconditionally approved by the Indian Supreme Court.

Read: Lakshmi Mittal faces a logistics challenge as he takes over Essar Steel

The Supreme Court approval of the resolution plan is the final procedural step in Essar Steel’s corporate insolvency process.

“Completion of the transaction is now expected before the end of the year. After completion, ArcelorMittal will jointly own and operate ESIL in partnership with Nippon Steel Corporation (‘Nippon Steel’), Japan’s largest steel producer and the third largest steel producer in the world, inline with the joint venture formation agreement signed by the two companies,” the statement added.

Besides the financial creditors and ArcelorMittal, the other major gainer from the Essar Steel would be the Exchequer itself as it can start collecting taxes from the profit made by the company as the moratorium on payments will expire soon.

Published on November 19, 2019

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