Global conglomerate ArcelorMittal’s mining unit is set to buy India’s distressed steelmaker Uttam Galva Steels for Rs40bn ($548.80mn).
Uttam Galva had been grappling with bad debts since 2019 and it subsequently appealed for bankruptcy in 2020, noted media reports on Friday. The company posted a Q3 2020 (period ending Mar 31, 2021) net loss of INR268.2mn and had about six steel majors expressing interest in its assets.
India’s committee of creditors (CoC) granted the approval to ArcelorMittal Mining with a 100pc vote. This will be the group’s second-largest purchase since its Rs410bn deal to acquire Essar Steel in March 2019.
Uttam Galva is headquartered in Maharashtra, India and it specializes in cold-roll and galvanized steel with annual capacities of 1mn mt and 750,000mt respectively.