ArcelorMittal Nippon to buy some Essar assets in $2.4B deal

Aug. 26, 2022 1:07 PM ETArcelorMittal S.A. (MT)By: Carl Surran, SA News Editor

Metal worker using a grinder

Phynart Studio/E+ via Getty Images

ArcelorMittal's (NYSE:MT) India joint venture with Nippon Steel said on Friday it agreed to acquire certain infrastructure assets from Essar Group for $2.4B, as it seeks to strengthen its steelmaking business in the country.

ArcelorMittal Nippon Steel (MT) said the purchase includes power and port assets as well as other logistics and infrastructure operations that will help move raw materials and finished goods between the company's manufacturing facilities across India.

The two companies also will build a liquefied natural gas terminal in Gujarat through an equally owned joint venture partnership.

Essar said the deal concludes its planned asset monetization program and complete a $25B debt repayment plan with Indian banks.

ArcelorMittal (MT) offers "a strong balance sheet [that] allows for opportunistic M&A," The Investment Doctor writes in a bullish analysis published recently on Seeking Alpha.

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