ArcelorMittal Nippon to buy some Essar Group assets for $2.4 billion

·1-min read
FILE PHOTO: A worker stacks steel pipes in the western Indian city of Ahmedabad

NEW DELHI (Reuters) - ArcelorMittal Nippon Steel India Ltd will acquire certain infrastructure assets from Essar Group for $2.4 billion, the steel manufacturer said on Friday, a deal that will strengthen its steel making business in the country.

The purchase of steel making business assets, including power, ports and other logistics and infrastructure operations, will be funded by the Indian unit of the joint venture between ArcelorMittal and Nippon Steel Corp, the company said.

The deal will cash accretive as soon as it is completed, ArcelorMittal said.

Post the deal, ArcelorMittal Nippon Steel will own port assets in Gujarat, Visakhapatnam and Paradip, and help move raw materials and finished goods between the company's manufacturing facilities in western, eastern and southern India, according to the statement.

Both the companies said the closing of transactions is subject to certain corporate and regulatory approvals.

The two companies will also build a liquefied natural gas terminal in Gujarat through an equally owned joint venture partnership.

With this deal, Essar will conclude its planned asset-monetization program and complete a $25 billion debt-repayment plan with Indian banks, it said.

(Reporting by Aftab Ahmed; Editing by Josie Kao)