The Competition Commission of India (CCI) approved the acquisition of the assets of Essar Group by ArcelorMittal Nippon Steel India Limited.

The proposed combination involves the acquisition of Power Assets (Essar Power Hazira Limited (EPHL), Gandhar Hazira Transmission Limited (GHTL)); Port Assets (Hazira Cargo Terminals Limited (HCTL), Ibrox Aviation & Trading Private Limited (IATPL), Essar Bulk Terminal Limited (EBTL), Essar Bulk Terminal Paradip Limited (EBTPL), Essar Vizag Terminals Limited (EVTL)); and Other Assets (Snow White Agencies Private Limited (SWAPL), Bhagwat Steel Limited (BSL)) from the Essar Group (EG/ Target) by ArcerlorMittal Nippon Steel India Limited (AMNS/ Acquirer). 

AMNS is a Joint Venture between ArcelorMittal S.A. (AM) and its affiliates and Nippon Steel Corporation, Japan (NSC), an official release said.

About the assets

EPHL is a power plant adjacent to AMNS, Hazira, Gujarat and comprises two generation units of 135-MW capacity each and is used by the acquirer for captive purposes.

GHTL is a public company incorporated to carry out prospecting, exploring, mining, processing, buying, selling, distributing, and dealing in all minerals including coal, and in the generation, purchase, transmission, distribution, and sale of electricity. 

It has 400 kV transmission line from Gandhar (NTPC) switch yard to Hazira having a length of 104.6 km, used by Acquirer for captive purposes.

EBTL has an-all weather, deep draft dry bulk jetty located in the Gulf of Khambatt, Magdalla Port terminal of Gujarat Maritime Board (GMB) with a capacity of under 25 million metric tonnes per annum (MMTPA). It provides facilities such as cargo handling services, jetty services, vessel handling services, pilotage, and towage, and is used by the Acquirer for captive purposes.

EBTPL has an all-weather dry bulk terminal licensed from Paradip Port Trust (PPT) with a capacity of 8 MMTPA. It has a fully mechanised ship loading system with a capacity of 4,500 tonnes per hour (TPH). It provides bulk cargo handling and mooring services, and is used by the Acquirer for captive purposes.

EVTL is the concessionaire of an all-weather, deep-water terminal under Visakhapatnam Port Trust (VPT) with an existing capacity of 12 MMTPA.

HCTL is the holding company of EBTL and EBTPL. It specialises in the development and operations of ports and terminals for handling bulk and general cargo. HCTL through its subsidiaries has an existing capacity of 66 metric tonnes per annum (MTPA) in India.

IATPL is a holding company and does not have any business operations.

SWAPL is a private company that owns a land parcel in Odisha along with an office and a guest house, which are primarily used by the Acquirer’s employees.

BSL, previously known as Essar Steel Chhattisgarh Limited, has not commenced any business operations, the release added.

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