FCC

Essar Group to sell infra assets to ArcelorMittal Nippon Steel

2022-08-29

ArcelorMittal Nippon Steel (AM/NS) India will acquire a clutch of infrastructure assets including three ports, two power plants and a power transmission line from Essar Group for $2.4 billion, or about Rs 19,158 crore, the companies said in separate statements.

The assets are mainly for captive use for the steelmaking operations of AM/NS India that had acquired Essar Steel India through the bankruptcy court in 2019. ArcelorMittal and Essar Group have also agreed to form a 50-50 joint venture partnership for building a four million tonne per annum (mtpa) LNG terminal at Hazira in Gujarat.

For ArcelorMittal Nippon Steel, the deal will mean better control and synergy in its end-to-end ore to finished steelmaking. For the Ruias of Essar, it provides an opportunity to focus on rebuilding their business empire. The 'win-win' deal will also perhaps end a three-year-old tussle between AM/NS India and Essar Group that saw both parties taking their differences to the courts, people aware of the development said.