ArcelorMittal Nippon Steel (AM/NS) is acquiring certain port and power infrastructure assets from the Essar group for $2.4 billion, or Rs 19,000 crore, in one of India’s largest post-pandemic M&A deal. The deal also envisages a 50-50 joint venture between Essar and ArcelorMittal to build a 4 million tonnes (mt) a year LNG import terminal at Hazira in Gujarat. The Essar group said in a statement that the ports and power infrastructure assets were primarily captive to the Hazira steel plant operations.
This was acquired by ArcelorMittal Nippon Steel (AM/ NS) in 2018-19. AM/NS India, which is a joint venture between Arcelor Mittal and Nippon Steel, acquired Essar Steel for around Rs 42,000 crore in bankruptcy proceedings in 2018-19. It claimed the acquisition had given it the right to operate the port as well. But Essar Bulk Terminal, part of the Essar group, opposed the claim saying the Hazira port was not part of the bankruptcy process.
