ArcelorMittal Nippon to buy some Essar Group assets for $2.4 billion

Credit: REUTERS/David W Cerny

NEW DELHI, Aug 26 (Reuters) - ArcelorMittal Nippon Steel India Ltd will acquire certain infrastructure assets from Essar Group for $2.4 billion, the steel manufacturer said on Friday, a deal that will strengthen its steel making business in the country.

The purchase of steel making business assets, including power, ports and other logistics and infrastructure operations, will be funded by the Indian unit of the joint venture between ArcelorMittal and Nippon Steel Corp, the company said.

The deal will cash accretive as soon as it is completed, ArcelorMittal said.

Post the deal, ArcelorMittal Nippon Steel will own port assets in Gujarat, Visakhapatnam and Paradip, and help move raw materials and finished goods between the company's manufacturing facilities in western, eastern and southern India, according to the statement.

Both the companies said the closing of transactions is subject to certain corporate and regulatory approvals.

The two companies will also build a liquefied natural gas terminal in Gujarat through an equally owned joint venture partnership.

With this deal, Essar will conclude its planned asset-monetization program and complete a $25 billion debt-repayment plan with Indian banks, it said.

(Reporting by Aftab Ahmed; Editing by Josie Kao)

((; +91 99109 33884; Reuters Messaging: twitter: @aftabahmed00))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.