Report: ArcelorMittal, Vedanta, VTB among India Essar Steel suitors - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Report: ArcelorMittal, Vedanta, VTB among India Essar Steel suitors

MOSCOW, Apr 3 (PRIME) -- ArcelorMittal SA, Vedanta Resources and a group comprising Russias VTB and top Indian steelmaker JSW Steel have bid for bankrupt steelmaker Essar Steel India, Reuters reported late on Monday quoting a joint statement of the companies.

Essar Steel is among a dozen of Indias biggest debt defaulters that were pushed into the bankruptcy court last year after a central bank order aimed at clearing record bad loans at the countrys banks.

A previous round of bids for Essar Steel, which faces nearly U.S. $8 billion in claims from its creditors, had attracted interest from ArcelorMittal and a VTB-led group. But a court-appointed administrator scrapped that round saying neither of the bidders was eligible to bid for the asset due to their links with loan-defaulting companies.

ArcelorMittal, which has long been trying to get a foothold in the booming Indian market with its own steel plant, said on Monday its India unit had submitted a bid for Essar Steel in a joint venture with Nippon Steel & Sumitomo Metal Corp.

ArcelorMittal earlier sold its stake in another Indian company Uttam Galva Steels Ltd - which has defaulted on bank loans - to clear the way for a bid for Essar Steel. Indias bankruptcy laws bar a company with any connection to a loan defaulter bidding for assets being auctioned under the bankruptcy process.

On March 24, Uttam Galva said the stock exchanges had approved declassification of ArcelorMittal as a promoter, or main backer, of the company.

We are confident we are eligible; we are confident we have the strongest track record; and we are confident we have made a strong and competitive offer, ArcelorMittals India-born chief Lakshmi Mittal said in a statement on Monday.

He did not say what the offer was.

NuMetal, a company led by Russias VTB, which also submitted bids for Essar Steel on Monday, has partnered JSW Steel in the latest round, according to a statement from the Indian steelmaker.

JSW Steels Joint Managing Director Seshagiri Rao told Reuters it had agreed to partner NuMetal after being approached by the company.

Anil Agarwal, the billionaire chief of London-headquartered Vedanta, said on Indian television station CNBC TV18 that they had put in a bid for Essar Steel.

The groups India-listed Vedanta Ltd last week was successful in an auction to buy another bankrupt steelmaker Electro Steels.


03.04.2018 08:30
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 71.9232 -0.3208 20 apr
USD 63.9602 -0.1086 20 apr
Stock Market Indices
1D 1W 1M 1Y
rtsi 1260.82 -0.12 18:50 19 apr
micex 2582.16 +0.71 11:48 22 apr
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 163.80 +0.76 11:32 22 apr
lkoh 5653.00 +0.91 11:32 22 apr
rosn 437.85 +1.35 11:31 22 apr
sber 235.10 +1.07 11:32 22 apr
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 71.9125 -0.2875 14:59 19 apr
USDTD 63.7500 -0.2625 11:34 22 apr