August : ArcelorMittal Nippon Steel India (AM/NS India or the Company) – a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steelmakers – announces that it has reached definitive agreement to acquire port, power and other logistics and infrastructure assets in India from the Essar Group for a net value of approximately US$2.4 billion. The transaction is expected to be funded only by AM/NS India.
The assets are either captive, including port assets in Gujarat, Andhra Pradesh and Odisha, or allied to AM/NS India’s steelmaking and will strengthen the strategic integration of the Company’s manufacturing and logistics chain.
Full ownership of the strategically located port assets in Gujarat, Visakhapatnam and Paradip will ensure seamless connectivity and supply chain security for movement of raw materials and finished goods between AM/NS India’s manufacturing facilities in western, eastern and southern India, as well as for exports. Acquisition of the power and transmission assets will ensure cost-effective, long-term power supply and energy efficiency at Hazira.
The assets being acquired are cash accruing and will generate operational synergies immediatelyupon completion of the transaction. AM/NS India will be able to realise further synergies from rising throughput at the port assets as a result of the company’s planned expansion of steel production capacity.
Transaction closing is subject to the completion of certain corporate and regulatory approvals. Key assets being acquired include: