Two of the biggest steel companies in the world, ArcelorMittal and Japan’s Nippon Steel, are in plans to put jointly bid for bankrupt steelmaker Essar Steel, it is understood.
Both the companies had initially planned to submit separate bids for Essar Steel. But according to sources, Nippon Steel and Lakshmi Mittal-led ArcelorMittal have decided to bid jointly for Essar Steel.
According to the same sources, we gather that the final contours of the tie-up are being worked out.
Interestingly, though Nippon Steel has deep pockets but it does not have any presence in India and therefore partnering with those who are familiar with Indian regulations is comforting. And for ArcelorMittal, partnership will add to the financial muscle needed for acquiring the company.
Essar Steel is one of the five steel companies headed for a sale following the Reserve Bank of India’s (RBI) decision to refer 12 companies to the bankruptcy court in June 2017, under the Insolvency and Bankruptcy Code (IBC).
Tata Steel, Vedanta Resources and Essar’s promoters, the Ruias in partnership with Russia’s VTB Capital are expected to be other contenders in the race for the troubled steelmaker.
