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ArcelorMittal and Numetal bid for Essar Steel - Report

Steel News - Published on Tue, 13 Feb 2018

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It is reported that ArcelorMittal and Mauritius-based Numetal, backed by Russian VTB Bank and Rewant Ruia as minority shareholder, have submitted bids to buy out distressed Essar Steel, in line with the corporate insolvency resolution process. Other interested bidders like Vedanta Resources, Tata Steel, JSW Steel did not submit any bids, the deadline for which closed on Monday evening

Confirming the development, a senior official of Numetal told The Hindu, “We have submitted the bids for Essar Steel and are are hopeful of getting it. Numetal is backed by VTB Bank of Russia as the majority shareholder and Rewant Ruia and other professionals from industry as minority shareholders.”

ArcelorMittal announced that its subsidiary ArcelorMittal India Private Limited (AMIPL) has today submitted an offer for Essar Steel India Limited ('Essar'), the Indian steel company, in-line with the corporate insolvency resolution process for Essar. In its offer, AMIPL set out a detailed industrial plan for Essar aimed at improving its performance and profitability and ensuring it can participate in the anticipated growth of steel demand in India. It also highlights the extensive experience and track record of the group in the successful acquisition and integration of under-performing assets, which AMIPL believes would be of considerable value to Essar. Essar would also have access to the deep bench of technical expertise and knowledge from across the group which is unparalleled in the steel industry.

Mr Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said "Essar provides a compelling opportunity for ArcelorMittal to enter the high growth Indian steel market. The offer submitted today by AMIPL includes a detailed investment plan to address operational issues in Essar's existing asset base. With our industry expertise and renowned operating prowess, we believe we are uniquely equipped to implement a successful turnaround which would be beneficial to Essar's stakeholders."

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Posted By : Sanju Moirangthem on Tue, 13 Feb 2018
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