ArcelorMittal awaits judgment on Essar Steel in November

ArcelorMittal is awaiting a ruling from the Indian Supreme Court in November on the proposed acquisition of Essar Steel (ESIL). Subject to a favorable and clear final order, completion of the deal is expected by the end of the year, the world's largest steelmaker said in a report.

In July, India's Supreme Court ruled to end the sale of Essar Steel to ArcelorMittal after creditors of the bankrupt steel mill challenged an earlier appeal court ruling. An earlier decision by the National Appeals Tribunal (NCLAT) approved the sale, but indicated that Essar's operating creditors should be treated on a par with financial creditors when splitting proceeds. Subsequently, hearings were held and the Supreme Court case was closed by the end of October.

ArcelorMittal plans to work with Essar Steel in partnership with Nippon Steel. Various legal issues prevented the deal from being completed, as Essar's creditors committee initially approved ArcelorMittal's resolution plan in October 2018.

ArcelorMittal and Nippon said they intend to increase the supply of finished Essar steel to 8.5 million tonnes per year in the medium term. In the longer term, the goal is to increase sales of finished steel to 12-15 million tonnes /year by adding new metallurgical assets.

ESIL currently produces 6.5 million tonnes /year of steel in western India and also has 14 million tonnes /year of iron ore pellets in eastern India.