Essar Steel Attracts Offer from World's Leading Steel Producer
ArcelorMittal didn’t provide details of the offer, but said it includes a plan for improving the company’s performance and profitability.
"Essar provides a compelling opportunity for ArcelorMittal to enter the high-growth Indian steel market. The offer submitted today … includes a detailed investment plan to address operational issues in Essar's existing asset base,” said ArcelorMittal chief executive Lakshmi Mittal.
Essar has a nameplate crude steel capacity of 9.6 million metric tons; however, a bottleneck in its steelmaking and casting operations effectively caps capacity at 6.1 million metric tons, ArcelorMittal said.
"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," said Mittal.
Essar Steel was one of several companies forced into insolvency proceedings last year by India’s central bank. Offers for the business were due Monday.
ArcelorMittal submitted one of the two offers for Essar by the deadline, according the Bloomberg news service, which cited anonymous sources.
Bloomberg has more here.