JSW Steel and ArcelorMittal Eye Vedanta's ESL Steel Assets in Strategic Bid

12 Oct 2023 , 01:44 PM

JSW Steel and ArcelorMittal emerge as potential bidders for ESL Steel’s iron ore mines and steel plant, owned by Vedanta Ltd. Vedanta Group sets an enterprise valuation of Rs 10,000 crore for the assets, sparking negotiations with potential buyers aiming for a reduced valuation.

Vedanta acquired ESL Steel’s plant in 2018 and initiated the sale due to escalating debt concerns, leading to discussions on asset valuation. Offers are expected in the range of Rs 7,500 crore to Rs 8,000 crore, with negotiations determining the final acquisition price.

Vedanta emphasizes a strategic review of steel and steel-making raw materials businesses, exploring options to maximize stakeholder value. JSW Steel expresses interest in Vedanta’s iron ore mines in Karnataka and Goa, underlining strategic asset acquisition focus.

ArcelorMittal eyes Vedanta’s steel plant in Jharkhand, seeking a strategic foothold in Eastern India for enhanced operations and proximity to vital raw materials. Vedanta Group aims to raise funds for debt repayment, highlighting the importance of the potential steel asset sale in its financial strategy.

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