ArcelorMittal Nippon Steel India Completes Rs 16,500-Crore Acquisition Of Port, Power Assets Of Essar Group

ArcelorMittal Nippon Steel India Completes Rs 16,500-Crore Acquisition Of Port, Power Assets Of Essar Group

ArcelorMittal Nippon Steel India (AM/NS India) – a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steelmakers – has concluded a transaction to acquire two port assets and a power plant from the Essar Group for a net value of about Rs 16,500 crore having received requisite corporate and regulatory approvals.

According to the press release, this transaction, fully funded by AM/NS India, follows an August 2022 agreement with Essar to acquire several power and infrastructure assets that are either captive or allied to AM/NS India’s operations and will strengthen the strategic integration of the company’s manufacturing and logistics chain.

In the following are the cash-generating assets which are now wholly-owned and operated by AM/NS India and are expected to generate operational synergies for the company immediately, AM/NS said.

A 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive and adjacent to AM/NS India’s flagship steel plant. A 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100 per cent of pellet shipments from AM/NS India’s Paradip pellet plant. A 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement with AM/NS India’s adjacent steel plant. ArcelorMittal Nippon Steel India’s Chief Executive Officer (CEO) Dilip Oommen said, “This transaction marks a major milestone in our ongoing efforts to strengthen AM/NS India’s energy and logistics supply chain. Owning these strategically located assets also supports our recently announced decision to proceed with a Rs. 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha.”

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Acquisitions of the remaining assets included in the August 2022 deal – a 515 MW gas based power plant at Hazira, 16 MTPA all-weather, deep draft terminal at Visakhapatnam and the 100 KM Gandhar – Hazira transmission line – are expected to be completed in due course once necessary regulatory approvals are received, the company said.