Nippon Steel, ArcelorMittal to Jointly Buy Major Indian Peer
Tokyo, Oct. 26 (Jiji Press)--Japan's Nippon Steel & Sumitomo Metal Corp. <5411> said Friday that it and ArcelorMittal, the world's leading steelmaker, will jointly buy Essar Steel India Ltd., currently in a business rehabilitation process, for some 420 billion rupees, or about 640 billion yen.
Through the acquisition, Nippon Steel & Sumitomo Metal aims to tap into the growing Indian market, where strong demand is expected for steel products for infrastructure development.
According to the announcement, a local subsidiary of Luxembourg-based ArcelorMittal has been picked as the successful bidder for the troubled major Indian steelmaker. The acquisition will be carried out after screenings by related Indian authorities.
Nippon Steel & Sumitomo Metal and ArcelorMittal are expected to own Essar Steel India almost equally, but ArcelorMittal is likely to take a slim-majority stake.
The acquisition deal will be the largest for Nippon Steel & Sumitomo Metal. The Japanese company is expected to invest some 300 billion yen in the Indian peer.
[Copyright The Jiji Press, Ltd.]