New Delhi: NRI billionaire Lakshmi Mittal-led ArcelorMittal on 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.
A committee of Essar Steel creditors picked ArcelorMittal on 25 October, a day when the Ruia family offered to pay lenders Rs 54,389 crore including Rs 47,507 crore in upfront cash to clear all their dues in a last-ditch effort to avert losing their flagship company.
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".