New Delhi: The world's largest steelmaker, ArcelorMittal SA, said on Friday its India unit would form a joint venture with Japan's biggest steelmaker Nippon Steel & Sumitomo Metal Corp to buy Indian steelmaker Essar Steel India Ltd, which is undergoing bankruptcy proceedings.
ArcelorMittal unit ArcelorMittal India Pvt Ltd submitted a plan to National Company Law Tribunal, which deals with insolvency and company disputes, on Feb. 12 to bid for Essar Steel in partnership with Nippon Steel.
In February, ArcelorMittal and a group led by Russia's VTB made separate bids for Essar Steel, which faces claims of nearly $8 billion from banks and other creditors and suppliers.
At the time, ArcelorMittal offered a "detailed industrial plan" for Essar Steel, aimed at improving its performance and profitability.
Essar Steel was among a dozen of India's biggest debt defaulters that were pushed to bankruptcy court last year after a central bank order aimed at clearing $147 billion in bad loans at the nation's banks choked lending.
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