ArcelorMittal wins bids to take over Essar Steel for Rs 42,000 crore

NRI billionaire Lakshmi Mittal-led ArcelorMittal Friday said it has won a bid to acquire debt-laden Essar Steel for over Rs 42,000 crore a deal that will help fulfil the world’s largest steel maker’s long-time ambition of having an India mill. In a statement, ArcelorMittal said its resolution plan for Essar Steel, which the lenders auctioned to recover over Rs 49,000 crore of unpaid loans includes an upfront payment of over Rs 42,000 crore to settle debt and a further Rs 8,000 crore of capital injection into the company to support operational improvement, increase production levels and deliver enhanced levels of profitability. A company spokesperson said the offer is superior to ArcelorMittal’s bid as it provides 100 per cent repayment to lenders and meets the objectives of maximisation of value and protection of the interest of all stakeholders.

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