ArcelorMittal SA said on Monday it had formed a joint venture with Nippon Steel Corp to run Essar Steel, the bankrupt steel company that ArcelorMittal has taken over.
Last month, Supreme Court had cleared the way for ArcelorMittal to take over Essar Steel following a legal tussle that dragged through multiple courts for over two years. ArcelorMittal and Nippon Steel had bid jointly for Essar, which has a capacity of 10 million tonnes of steel per year.
ArcelorMittal will have a 60 per cent stake in the new venture - ArcelorMittal Nippon Steel India Ltd - the world's biggest steelmaker said in a statement.
The new company aims to export up to 15 million tonnes of finished steel.
Essar Steel, which had debts of nearly Rs 50,000 crore, was among twelve large steel and infrastructure companies that were referred to bankruptcy court in 2017.