December 16, 2019 / 2:39 PM / 8 months ago

ArcelorMittal forms JV with Nippon Steel to run Essar Steel

FILE PHOTO: Workers stand near the logo of ArcelorMittal, the world's largest producer of steel, at the steel plant in Ghent, Belgium, July 7, 2016. REUTERS/Francois Lenoir

NEW DELHI (Reuters) - ArcelorMittal SA (MT.AS) said on Monday it had formed a joint venture with Nippon Steel Corp (5401.T) to run Essar Steel, the bankrupt Indian steel company that ArcelorMittal has taken over.

Last month, India’s Supreme Court had cleared the way for ArcelorMittal to take over Essar Steel following a legal tussle that dragged through multiple courts for over two years.ArcelorMittal and Nippon Steel had bid jointly for Essar, which has a capacity of 10 million tonnes of steel per year.

ArcelorMittal will have a 60% stake in the new venture - ArcelorMittal Nippon Steel India Ltd - the world’s biggest steelmaker said in a statement.

The new company aims to export up to 15 million tonnes of finished steel.

Essar Steel, which had debts of nearly 500 billion rupees (£5.43 billion), was among twelve large steel and infrastructure companies that were referred to India’s bankruptcy court in 2017.

Reporting by Neha Dasgupta and Promit Mukherjee. Editing by Jane Merriman

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