Private Equity

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ArcelorMittal-Nippon Steel buys Essar's Hazira plant infra assets for Rs.19,000-Cr

MoneyControl  

The Essar Group has signed a INR 19,000 crore sale pact with ArcelorMittal Nippon Steel (AM/NS) for certain ports and power infrastructure assets - which are primarily captive to Hazira steel plant operations. The deal also envisages a 50-50 joint venture partnership for building a 4 MTPA LNG terminal at Hazira, Gujarat, between Essar and ArcelorMittal. AM/NS India is a joint venture between Lakshmi Mittal-led ArcelorMittal and Nippon Steel. With this agreement, Essar will complete its asset monetisation programme and complete the INR 2,00,000 crore debt repayment plan, with the Indian banks being almost fully repaid. The monetized assets include a 10 MTPA refinery in the UK, 15 TCF reserves of unconventional hydrocarbons in India and Vietnam and a 1,200 MW power plant in India; Infra sector assets include a storage terminal in the UK and a 20 MTPA Port in India. Metals & Mining sector assets include a major iron ore mine and pellet project in the USA. Technology & Services sector assets include Global EPC business and IT solutions provider with centres across 30+ countries.