ArcelorMittal and Nippon Steel Corp. closed their acquisition of the troubled Essar Steel India Ltd., according to a Dec. 16 news release.
In October 2018, the companies lodged a winning bid of 420 billion Indian rupees, or about US$5.7 billion at the time, to acquire Essar Steel through India's insolvency process.
The deal faced hurdles related to the payment's distribution to Essar Steel's creditors and vendors. In November, India's Supreme Court gave its unconditional approval of the deal.
In line with a 2018 agreement, ArcelorMittal and Nippon Steel will form the ArcelorMittal Nippon Steel India Ltd. joint venture, which will own and operate Essar Steel. ArcelorMittal will own 60% of the venture, and Nippon Steel will hold 40%.
The joint venture has crude steel capacity of 7.5 million tonnes per annum and iron ore pellet capacity of 14 mtpa. The company plans to increase its finished steel shipments to 8.5 mtpa over the medium term and to between 12 mtpa and 15 mtpa over the long term.