ArcelorMittal, the world's biggest steelmaker, and Nippon Steel Corporation have completed their joint acquisition of EssarSteel India Limited. The deal was signed, sealed and delivered yesterday, 16 December 2019. The company formerly known as Essar Steel in India Ltd (ESIL) will now be called ArcelorMittal Nippon Steel India (AM/NS India).
According to a press release issued by AM/NS India, the new business 'has significant potential for further expansion' in a domestic market where locally produced steel products possess a high market share.
AM/NS India now owns India's third-largest integrated steel mill. The plant is located in the west of the country where there is strong demand for steel, and offers a diversified range of products, mainly comprising flat steel.
The acquisition will enable the new joint venture to participate as a domestic integrated steelmaker and capture growing mid-to-long-term steel demand in the country.
ArcelorMittal and Nippon Steel will manage the new JV as equal partners in the same way that it manages its other JVs. "The two companies will leverage their respective strengths and apply them to realise the maximum potential of AM/NS India and revitalise it as a competitive steel company," it was claimed in the joint announcement.
Lakshmi Mittal, chairman and CEO of ArcelorMittal called the acquisition 'an important strategic step' while Eiji Hashimoto, representative director and president of Nippon Steel said that the new JV would bring out the potential of the new business by providing it with the business experience and world-leading advanced technologies to realise further business expansion. "This will further enable us, Nippon Steel, to accelerate our advance towards becoming the best steelmaker with world leading capabilities," he said.
ArcelorMittal's president and chief financial officer, Aditya Mittal, said that AM/NS India 'will create significant value' for shareholders, employees and communities in India.