ArcelorMittal and SAIL may bid jointly for Bhushan Steel - Report
Money Control, citing two independent industry sources, reported that ArcelorMittal and Steel Authority of India Limited (SAIL) are exploring a joint bid for Bhushan Steel. A senior banker told Money Control “ArcelorMittal has shown interest in buying and the government-owned SAIL needs money to buy. A joint bid makes sense.”
An industry person aware of the development told “With SAIL’s backing, ArcelorMittal will find it comfortable and easier to deal with the bidding process and, possibly clinching the deal. One has the government tag and the other has global expertise.”
Both ArcelorMittal and SAIL had separately submitted their expressions of interest for the Bhushan asset. While ArcelorMittal had shown its interest in October last year, SAIL was a last entrant in the race, throwing its hat in the ring only in December.
ArcelorMittal and SAIL had recently revived a joint venture to manufacture auto-grade steel in India. The memorandum of understanding for the INR 5,000-crore project was initially signed in 2015. It was reviewed in 2016, and late last year.
Bhushan Steel now has an annual capacity of 5.6 million tonnes. Bhushan has piled up a debt of INR 46,000 crore. It now has reported net losses in 16 straight quarters. It had a net loss of INR 3,127 crore in the 2017FY.
Source : Money Control