ArcelorMittal said that it had submitted an offer for Essar Steel, a distressed steelmaker, which is currently undergoing insolvency proceedings reports from PTI.
The last date to submit the bids was on February 12, 2018.
ArcelorMittal's subsidiary, ArcelorMittal India Private Limited (AMIPL), has submitted an offer for Essar Steel India Limited (Essar).
"In its offer, AMIPL set out a detailed industrial plan for Essar aimed at improving its performance and profitability and ensuring it can participate in the anticipated growth of steel demand in India. It also highlights the extensive experience and track record of the group in the successful acquisition and integration of under-performing assets, which AMIPL believes would be of considerable value to Essar," the Luxemburg-based firm said in a statement.
Essar would also have access to the deep bench of technical expertise and knowledge from across the group which is unparalleled in the steel industry, it added.
Lakshmi Mittal, Chairman, and CEO of ArcelorMittal said "Essar provides a compelling opportunity for ArcelorMittal to enter the high growth Indian steel market. The offer submitted by AMIPL includes a detailed investment plan to address operational issues in Essars existing asset base".
"With our industry expertise and renowned operating prowess, we believe we are uniquely equipped to implement a successful turnaround which would be beneficial to Essar's stakeholders," he said.
Aditya Mittal, Group CFO and CEO of ArcelorMittal Europe, said "This opportunity aligns with the group's strategy of selectively investing in attractive projects to maximize long-term shareholder value. We believe our technical experience and management know-how, gained from many successful acquisitions and integrations, will ensure success for the various steel and pelletizing operations at Essar."
Essar Steel has its central production facility in Gujarat. The company is a fully integrated flat carbon steel manufacturer - ranging from iron ore to ready-to-market products. It has a current capacity production of 10 million tonnes per annum. The company's manufacturing facility comprises ore beneficiation, pellet making, iron making, steel making, and so on.
Essar Steel is one of the 12 companies identified by the Reserve Bank of India (RBI), for the insolvency proceedings.