Home / Companies / News /  AM/NS completes 16,500 crore acquisition of port, power infra assets of Essar Group

NEW DELHI: Steel maker ArcelorMittal’s arm AMNS India has concluded the acquisition of two port assets and a power plant from the Essar Group for a net value of about 16,500 crore having received requisite corporate and regulatory approvals.

This transaction, fully funded by AM/NS India, follows an August agreement with Essar to acquire several power and infrastructure assets that are either captive or allied to AM/NS India’s operations and will strengthen the strategic integration of the company’s manufacturing and logistics chain.

The sale consisted of infra assets including a 270 MW power plant and 25 million tonne per annum port at Hazira, Gujarat, and a 12 million tonnes a year port at Paradip, Odisha.

“This transaction marks a major milestone in our ongoing efforts to strengthen AM/NS India’s energy and logistics supply chain. Owning these strategically located assets also supports our recently announced decision to proceed with a Rs. 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha,“ said Dilip Oommen, chief executive officer, ArcelorMittal Nippon Steel India (AM/NS India).

“Essar has concluded its asset monetisation programme and completed the debt repayment of $25 billion ( 2,00,000 crore) effectively making the group debt-free from Indian banks and financial institutions,“ Prashant Ruia, director, Essar Capital, said.

“In a planned and strategic manner, we have monetised assets that we built over last 30 years. We are now reinvesting in our existing operations and in building new assets, both in India and overseas, with more efficient, latest and carbon neutral new-age technologies, which will be sustainable," Rewant Ruia, director, Essar Ports Terminals Limited said.

Acquisitions of the remaining assets – a 515 MW gas based power plant at Hazira, 16 MTPA all-weather, deep draft terminal at Visakhapatnam and the 100 KM Gandhar - Hazira transmission line – included in the August agreement are expected to be completed in due course once necessary regulatory approvals are received.

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