ArcelorMittal Nippon Steel India completes Rs 16,500 crore acquisition of port and power assets from Essar Group

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Biznextindia : ArcelorMittal Nippon Steel India (AM/NS India) has concluded a transaction to acquire two port assets and a power plant from the Essar Group for a net value of approximately Rs 16,500 crore (USD 2 billion) having received requisite corporate and regulatory approvals.

This transaction, fully funded by AM/NS India, follows an August 2022 agreement with Essar to acquire several power and infrastructure assets that are either captive or allied to AM/NS India’s operations and will strengthen the strategic integration of the company’s manufacturing and logistics chain.

With this, Essar has completed its asset monetization and has become debt free.

Following this acquisition several port & power assets of Essar are now wholly owned and operated by AM/NS India. The assets include, a 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive and adjacent to AM/NS India’s flagship steel plant, a 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100% of pellet shipments from AM/NS India’s Paradip pellet plant and a 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement with AM/NS India’s adjacent steel plant.

“This transaction marks a major milestone in our ongoing efforts to strengthen AM/NS India’s energy and logistics supply chain. Owning these strategically located assets also supports our recently announced decision to proceed with a Rs. 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha” Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India (AM/NS India), said.

Acquisitions of the remaining assets included in the August 2022 agreement – a 515 MW gas based power plant at Hazira, 16 MTPA all-weather, deep draft terminal at Visakhapatnam and the 100 KM Gandhar – Hazira transmission line – are expected to be completed in due course once necessary regulatory approvals are received.

ArcelorMittal Nippon Steel India is a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steelmakers –

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