ArcelorMittal (NYSE:MT)
The joint venture between ArcelorMittal (NYSE:MT) and Nippon Steel in India said on Friday that it has reached an agreement to pay $2.4 billion to Essar Group for a number of infrastructure assets as it looks to expand its steelmaking operations there.
The acquisition, according to ArcelorMittal Nippon Steel (NYSE:MT), comprises power and port assets as well as other logistics and infrastructure operations that will aid in moving raw materials and completed goods around the company’s manufacturing plants spread out across India.
Details on the Agreement
Through a jointly held joint venture, the two businesses would also construct a liquefied natural gas facility in Gujarat. According to Essar, this agreement will bring to an end its intended asset monetization campaign and finish a $25 billion debt repayment plan with Indian banks. Essar said without going into specifics that it had planned large investments in its main industries, which include energy, infrastructure, metals and mining, technology, and services.
“While continuing operations will give operational stability, our renewed focus will be to transition current assets to Green and invest in clean firms that are reshaping industries around the investing themes of decarbonization and digitization,” it was noted.
A solid balance sheet that permits opportunistic M&A is provided by ArcelorMittal (MT). According to the corporation, the Indian division of the joint venture between ArcelorMittal and Nippon Steel Corp. will finance the acquisition of steel-making business assets, such as power, ports, and other logistics and infrastructure operations.
According to the announcement, after the purchase is completed, ArcelorMittal Nippon Steel would possess port assets in Gujarat, Visakhapatnam, and Paradip and assist in transporting raw materials and finished goods between the company’s manufacturing plants in western, eastern, and southern India.
The conclusion of transactions, according to both businesses, is pending a few corporate and governmental approvals.
Featured Image: Megapixl @Artas101
Author Jowi Kwasu 
