BS reported that Essar Steel Holdings may raise its bid for US based Esmark after OAO Severstal matched Essar Steel’s USD 17 a share offer, which valued the company at USD 668 million. The report said that Essar Steel will submit its revised bid after negotiating with the United Steel Workers.

The winning bidder will also have to take on a debt of USD 400 million, taking the total exposure to USD 1.1 billion.

The purchase of Esmark will help Essar to integrate its operations in the US with the recently acquired companies, including Canada based Algoma Steel and US based Minnesota Steel. Essar needs a steady supply of steel for its plate making and galvanizing operations at the Wheeling Pitt plant and Sparrows Point, which it recently bought from ArcelorMittal.