ArcelorMittal, Tata Steel evince interest in Bhushan Steel
Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel have evinced interest in Bhushan Steel which is undergoing insolvency proceedings.
The development has come at a time when the debt-laden firm, which was referred to NCLT by the RBI under the Insolvency and Bankruptcy Code, has reported narrowing down of its standalone net loss to Rs 467.37 crore during the September quarter from Rs 980.22 crore in the same period a year ago.
During the July-September 2017, total income of Bhushan Steel rose 43 per cent to Rs 4,325.60 crore from Rs 3,025.79 crore during the same period a year ago, the company said in a BSE filing.
“Yes! ArcelorMittal is interested in Bhushan Steel,” said a person in the know of the matter and refused to elaborate further.
When contacted, a Tata Steel company official said, “The company keeps on looking at such opportunities.”
Last month, Tata Steel and ArcelorMittal had submitted expression of interest (EoI) to acquire debt-laden Essar Steel — another stressed company undergoing the insolvency proceedings at the National Company Law Tribunal (NCLT).
Essar Steel India Ltd, an integrated steel producer with an installed capacity of 10 million tonne per annum (MTPA) is undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of Insolvency and Bankruptcy Code.
According to the information on Bhushan Steel Ltd website, the company is the 3rd largest secondary steel producer in the country with an existing steel production capacity of 5.6 million ton per annum.
Both Tata Steel and ArcelorMittal see the proceedings as an opportunity as the two companies are looking to expand their operations in the country.