The world's leading steel maker, ArcelorMittal, said on Friday it has signed a joint venture agreement with Nippon Steel & Sumitomo Metal Corporation (NSSMC) on its offer to acquire Essar Steel India Limited.
The company's subsidiary, ArcelorMittal India Private Limited (AMIPL), had submitted a resolution plan for Essar on February 12, which outlined the intention to have NSSMC formally join its bid for Essar Steel.
"Should the submitted Resolution Plan be selected and formally accepted by India's National Company Law Tribunal, ArcelorMittal and NSSMC would jointly acquire and manage Essar Steel," the company said in a statement.
In its resolution plan, AMIPL set out a detailed industrial and turnaround plan aimed at restoring the debt laden steel company's fortunes, enabling it to realise its full potential and participate in the anticipated steel demand growth in India.
"Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer. Combining our experience and expertise creates a powerful partnership that has a proven track record - our rich history of positive collaboration dates back more than 20 years with three joint ventures in the US," company's Chairman and CEO Lakshmi Mittal said.
He also said together they can contribute their knowledge and technology to support a rapid turn-around in Essar's performance, enabling it to increase production, enhance its product capabilities and make a meaningful contribution to the future growth of India's manufacturing sector and the development of its economy.
ArcelorMittal and NSSMC have operated in Indiana in the US under joint venture agreements since 1987.
More recently, in 2014, ArcelorMittal partnered with NSSMC on the acquisition of AM/NS Calvert, a downstream finishing facility in Alabama in the US.
--IANS
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