ArcelorMittal, Nippon Steel bid for Essar Steel
This is in connection with the joint venture between ArcelorMittal and NSSMC to jointly acquire and manage Essar Steel.
NSSMC is Japan’s leading steel company, with capacity to produce approximately 50 million tons of crude steel per year with a reputation for innovation and high-quality products.
ArcelorMittal and NSSMC have enjoyed a close collaboration for many decades co-operating high-quality downstream finishing facilities in the U.S. including I/N Tek, I/N Kote and, since 2014, jointly acquired and turned around AM/NS Calvert which has state-of-the-art facilities in Alabama that had failed to reach its potential under its previous owner.
AMIPL first submitted a bid for Essar Steel on 12th February. On 2nd March, ArcelorMittal announced it had signed a joint venture agreement with NSSMC which will see the two companies co-own and co-manage Essar Steel in the event AMIPL’s bid is successful.
Chairman and CEO ArcelorMittal, said: "The aim of the resolution process is to find a strong, new, capable owner for Essar Steel and maximize returns to creditors.
"We believe that ArcelorMittal, together with NSSMC, has the most relevant credentials and experience and is the most credible owner for Essar Steel given our decades of steel industry expertise, backed up by industry leading research and development and a wide range of innovative product capabilities."
Kosei Shindo, President of NSSMC, said: "India is the most promising steel market in the world, and NSSMC has been seeking opportunities to establish a significant presence in India, motivated by a long and successful history of respect and collaboration between Japan and India.
"This project, if implemented, will be consistent with the policy of the Japanese Government to further strengthen the relationship between India and Japan. The Japanese Government has been following the project and is looking for its realization." ■