An ArcelorMittal plant. Picture: ROBERT TSHABALALA
An ArcelorMittal plant. Picture: ROBERT TSHABALALA

Mumbai — ArcelorMittal has agreed to pay off loans for two group companies in India to be eligible to bid for the indebted Essar Steel India as the steel maker seeks a foothold in a market that is poised to be the second-biggest producer of the alloy.

The firm approved payment of 74.69-billion rupees ($1bn) to creditors of Uttam Galva Steels and KSS Petron, ArcelorMittal said on Wednesday.

India’s supreme court had asked Arcelor and a rival consortium, Numetal, to clear dues in group companies by Thursday to be deemed eligible bidders for Essar. Numetal declined to comment on payment by the deadline.

A failure to clear the dues will make Numetal ineligible, paving the way for Arcelor to emerge as the preferred bidder, unless the lenders call for fresh bids.

Bloomberg

Please sign in or register to comment.