ArcelorMittal flags risks on Essar Steel acquisition


ArcelorMittal flags risks on Essar Steel acquisition

Global steel giant ArcelorMittal has said that it is staring at various risks including excess capital expenditure and delays in achieving commercial objectives in view of its proposed acquisition of debt-laden Essar Steel India.

The steelmaker’s proposal to take over Essar Steel India (ESIL), via a joint venture (JV) with Nippon Steel & Sumitomo Metal Corporation (NSSMC), in a bankruptcy resolution process has been approved by the committee of creditors (CoC) and is pending before the National Company Law Tribunal (NCLT).

“Should the resolution plan be implemented, as is currently expected, it would subject ArcelorMittal to various risks. On the operational front, the industrial project to turnaround ESIL and further improve operational profitability is large-scale and ambitious,” ArcelorMittal’s annual report said. Read More

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