ArcelorMittal is in talks to buy Karnataka-based Bellary Steels & Alloys Ltd, which has been taken over by its lenders after failing to convince them to waive a part of its Rs 2,600 crore debt and restructure the rest, three people familiar with the matter said.
Bellary Steels has a total debt of about Rs 2,600 crore and accumulated losses of about Rs 300 crore, said A Mallikarjunappa, general manager (finance), who confirmed the development.
“ArcelorMittal is in talks with the lenders directly, so I do not have details of the talks,” he told NewsWire18 on phone.
Shares of the company shot up 5 per cent after the news and have remained locked at that level since. At 1503 IST, it was trading at Rs 3.18 on the Bombay Stock Exchange.
Bellary has about 1,150 acres and its purchase will give the world’s largest steel maker a head-start in Karnataka, where it plans to set up a 6 million tonnes per year steel plant.
“It obviously takes care of the biggest hurdle any industrial project today faces,” an analyst with a Mumbai-based brokerage said.
