JSW, ArcelorMittal submit bids for Essar Steel in 2nd round bidding

JSW, ArcelorMittal submit bids for Essar Steel in 2nd round bidding
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New Delhi/Mumbai: In a battle for taking over insolvent Essar Steel, Sajjan Jindal-led JSW with Nu Metal submitted its bid for the beleaguered steel firm while L.N. Mittal’s ArcelorMittal, which teamed up with Nippon Steel & Sumitomo Metal Corporation (NSSMC) for the acquisition, said its India subsidiary submitted an offer in the re-bidding process on Monday.

“ArcelorMittal’s subsidiary ArcelorMittal India Private Ltd (AMIPL) has today (Monday) submitted an offer in the re-bidding process for Essar Steel India Ltgd (‘Essar Steel’) in connection with the joint venture between ArcelorMittal and NSSMC to jointly acquire and manage it,” the company said in a statement.

Leading steel company JSW Steel, which is expanding its capacities through brownfield expansions, is also evaluating opportunities in inorganic growth.

“Pursuance to this strategy, JSW Steel Ltd in the capacity of an investor joined NU Metal& Steel Pvt Ltd in submitting a binding bid for Essar which is under the corporate insolvency resolution process as per provisions of Insolvency and Bankruptcy Code, 2016,” it said in a regulatory filing.

The committee of creditors (CoC) for debt-laden steel firm had announced re-bidding for the firm after rejecting the bids received from ArcelorMittal and Numetal in the first round citing the related party clause under the Insolvency and Bankruptcy Code (IBC).

Though six entities submitted Expression of Interests in the first round, only two companies, ArcelorMittal and Nu Metal, had participated in the bidding process. The second round was open only to companies that had submitted EoIs in the first round, barring new players from submitting resolution plans.

IANS