ArcelorMittal-Nippon Steel JV in India Won Platts 'Deal of the Year' Award

SEATTLE (Scrap Monster): Arcelor Mittal-Nippon Steel (AM/NS) India- the joint venture between the two companies, which acquired Essar Steel India Limited, has won the ‘Deal of the Year’ award at the S&P Platts 2020 Global Metals Awards.

The acquisition of the bankrupt steel firm was the largest concluded private-sector transaction in the country during the previous year. Also, it was ranked as the second largest transaction in steel sector in the world of 2019. The joint venture had emerged as the successful bidder after facing intense competition from several other bid participants. In addition, it had to face multiple legal hurdles. The case had even appeared before the Supreme Court of India- the highest legal office in the country. The acquisition process was completed in 865 days, which is one of the longest duration for any acquisition.

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The deal was special in the sense that both the joint venture partners had no presence in the Indian market, prior to the acquisition. It provided a sizeable entry for both the companies into the high-growth Indian steel market.

As part of the deal, the joint venture has acquired Essar Steel’s fully integrated steel mill in Hazira, Gujarat State, upstream facilities including pellet plants, a string of downstream facilities and service centers spread across the country.

ArcelorMittal holds 60% equity stake in the joinr venture, with the Japanese Nippon Steel holding the balance 40%.