Essar facilities at Hazira have been sold to the AM/NS business
India’s Essar group has entered into an agreement with Arcelor Mittal Nippon Steel (AM/NS) for the latter to acquire various ports and power infrastructure assets, including those captive to the Hazira steel plant’s operations, in a deal worth around US$ 2.5 billion.
Included in the transaction are a 25 million tonnes a year capacity jetty at the deep draft bulk port terminal at Hazira, adjacent to AM/NS India’s flagship steel plant; a 16 million tonnes a year deep draft terminal at Visakhapatnam, along with an integrated conveyor connected to AM/NS India’s iron ore pellet plant in the port city; and a deep-water jetty at Paradip, along with a dedicated conveyor that handles pellet shipments from AM/NS India’s Paradip pellet plant.
The deal also envisages that a 50-50 joint venture partnership between Essar and ArcelorMittal will build a four million tonnes a year capacity LNG terminal at Hazira.
Rewant Ruia, Director, Essar Ports & Terminals Limited, said: “With this deal, which yields a multifold return on our investments, Essar Ports & Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern coreinfrastructure assetsin India and overseas.”
