Tough challenge for ArcelorMittal to complete Essar Steel buy


Tough challenge for ArcelorMittal to complete Essar Steel buy

After braving tough legal challenges to emerge as the successful resolution applicant for Essar Steel, the worlds largest steel maker ArcelorMittal might now face a tough challenge to go ahead with the buyout of a fully integrated steel facility in India amidst falling steel power and bleak outlook for the sector.

Industry sources in the know of the developments said that the Luxembourg-based company is constantly reviewing its India plans and is also under pressure from its investors, some of whom have questioned buying a steel plant at a premium at this juncture when the market prospects has painted a darker future for the sector.

ArcelorMittal however, did not respond to a query sent by IANS on the developments. Messages and phone calls made to the spokesperson did not elicit any response.

The company in a statement to investors though had said it expects to close the Essar Steel acquisition in the December quarter. Read More

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