The world's biggest steelmaker ArcelorMittal announced Monday that it has concluded its acquisition of debt-laden Essar Steel, a significant win for India's nascent bankruptcy law designed to help nurse insolvent companies back to health.
The announcement brings a fractious chapter to a close after India's Supreme Court cleared ArcelorMittal's bid for Essar Steel last month, setting aside a previous ruling by a national tribunal that threatened to obstruct the deal.
One of India's key steelmakers, Essar Steel was earmarked for insolvency proceedings in 2017 under the country's first ever bankruptcy law passed a year earlier.
"The acquisition of Essar Steel is an important strategic step for ArcelorMittal," the global giant's chairman Lakshmi Mittal said in a statement. "India has long been identified as an attractive market for our company and we have been looking at suitable opportunities to build a meaningful production presence in the country for over a decade," Mittal said. ArcelorMittal will run the company in a joint venture with Japan's Nippon Steel, which will hold the remaining 40 percent stake in the newly-formed entity, the statement added.
Copyright Agence France-Presse, 2019
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