JSW Steel, NuMetal submit joint bid for Essar Steel
Photo Credit: Reuters

Billionaire Sajjan Jindal-led JSW Steel Ltd said on Monday it has submitted a joint bid with Nu Metal and Steel Pvt. Ltd in the second round of bidding for the acquisition of debt-laden Essar Steel Ltd.

Last month, the proposed auction of Essar Steel had suffered a setback when its lenders rejected the resolution plans submitted by steel giant ArcelorMittal SA and Numetal Mauritius, saying the bidders were not eligible.

Numetal Mauritius is a joint venture between Russia’s VTB Bank and Rewant Ruia, the son of Ravi Ruia, one of the promoters of Essar Steel.

In the first round, Numetal and ArcelorMittal were the only two parties that bid to acquire Essar Steel. A second round of bidding was called out by Essar Steel’s creditors on Monday.

ArcelorMittal and mining tycoon Anil Agarwal-led Vedanta have also likely submitted their bids in the second round. The auction is an important one for steel tycoon Lakshmi Mittal-led ArcelorMittal, which has sought to start its own steel plant in India for a long time.

Essar Steel is among the 12 large non-performing asset accounts identified by the Reserve Bank of India in its first list for loan resolution under the Insolvency and Bankruptcy Code. It owes its lenders nearly $8 billion.

JSW Steel, part of the $11 billion JSW Group, has an installed steel-making capacity of 18 million tonne per annum (MTPA). It has been on the lookout for steelmakers to grow its operations. Last week, it agreed to acquire US-based steel mill owner Acero Junction Holdings Inc. for up to $80.85 million.

Last month, JSW Steel sought antitrust nod for a joint plan worth Rs 3,500 crore along with distressed assets player AION Capital Partners Ltd to acquire bankrupt steelmaker Monnet Ispat and Energy Ltd.

In another recent development, Tata Group company Tata Steel Ltd was named the preferred bidder to take over Bhushan Steel Ltd.

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