ArcelorMittal Nippon Steel India (AM/NS India or the Company) – a joint venture between ArcelorMittal and Nippon Steel, recently announced that it has reached definitive agreement to acquire port, power and other logistics and infrastructure assets in India from the Essar Group for a net value of approximately US$2.4 billion. The transaction is expected to be funded only by AM/NS India.
As part of this deal Essar port’s 16 MTPA all-weather, deep draft terminal at Visakhapatnam, Andhra Pradesh along with an integrated conveyor connected to AM/NS India’s 8 MTPA iron ore pellet plant in the port city shall be acquired.
Similarly the other assets in Essar group’s ports segment that will go to AMNS include 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 and a 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100% of pellet shipments from AM/NS India’s Paradip pellet plant.
The deal also envisages a 50-50 Joint Venture partnership, for building a 4 MTPA LNG terminal at Hazira, Gujarat, between Essar and ArcelorMittal.
Mr Rewant Ruia, Director, Essar Ports & Terminals Limited, said “With this deal, which yields a multifold return on our investments, Essar Ports & Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas.”
The closing of the M&A deal is subject to completion of certain corporate and regulatory approvals applicable for respective assets.
