ArcelorMittal to Pay $1 Billion to Push Ahead With Essar Bid
17 October 2018 - 10:33PM
Dow Jones News
By Nathan Allen
ArcelorMittal (MT.AE) said Wednesday that it has agreed to pay
around $1 billion to clear the debts of two Indian steel companies
so that it can go ahead with its bid for Essar Steel India Ltd.
India's Supreme Court ruled earlier in October that
ArcelorMittal must pay off the debts of Uttam Galva and KSS
Petron--two companies in which it previously held stakes--before
its bid for Essar Steel could be considered.
"Given the significant benefits that ESIL would bring to
ArcelorMittal, making this payment was an appropriate course of
action under the circumstances," the company said.
ArcelorMittal hasn't disclosed the exact value of its bid but
has confirmed that media reports of a $5.8 billion price tag are
broadly accurate.
The Luxembourg-based steelmaker faces competition from rival
NuMetal, a recently created entity set up by members of Essar's
founding Ruia family and backed by Russia's VTB Bank (VTBR.MZ).
Essar's Creditors now have eight weeks to respond to the
bids.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
October 17, 2018 07:18 ET (11:18 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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