Construction Industry News
The proposed combination includes the acquisition of certain assets (a) Power Assets (Essar Power Hazira (EPHL), Gandhar Hazira Transmission (GHTL)); (b) Port Assets (Hazira Cargo Terminals (HCTL), Ibrox Aviation & Trading (IATPL), Essar Bulk Terminal (EBTL), Essar Bulk Terminal Paradip (EBTPL), Essar Vizag Terminals (EVTL)); (c) Other assets (Snow White Agencies (SWAPL), Bhagwat Steel (BSL)) of the Essar Group (EG/Target) by ArcerlorMittal Nippon Steel India (AMNS/Acquirer). All of these target assets belong to the Essar Group. AMNS is a joint venture between ArcelorMittal S.A. (AM) and its subsidiaries and Nippon Steel Corporation, Japan (NSC).
EPHL is a power plant adjacent to AMNS, Hazira, Gujarat and comprises two generating units of 135 MW each and is used by the acquirer for internal purposes.
GHTL is a limited liability company formed to carry out the activities of prospecting, exploration, mining, processing, purchase, sale, distribution and general trading of all minerals, including coal, and also trading in the generation, procurement, transmission, distribution and sale of electricity. It has a 400 kV transmission line from Gandhar Switching Station (NTPC) to Hazira with a length of 104.6 km which is used by Acquirer for captive purposes.
EBTL has an all-weather dry bulk jetty located in the Gulf of Khambatt, Gujarat Maritime Board (GMB) Magdalla Port terminal with a capacity of less than 25 million tons per year (MMTPA). It offers the following facilities: (i) cargo handling services; (ii) docking services; (iii) ship handling services; (iv) piloting; and (v) towing and being used by the Acquirer for captive purposes.
EBTPL has a Paradip Port Trust (PPT) licensed all-weather dry bulk terminal with a capacity of 8 MMTPA. It has a fully mechanized ship loading system with a capacity of 4,500 tons per hour (TPH). It offers the following services: (i) bulk cargo handling; and (ii) mooring services and is used by the Acquirer for captive purposes.
EVTL is the concessionaire of an all-weather deep-water terminal under Visakhapatnam Port Trust (VPT) with an existing capacity of 12 MMTPA.
IATPL is a holding company and has no business activities.
SWAPL is a private company and owns a plot of land in Odisha, an office and a guest house. The office and guest house are primarily used by Acquirer's employees.
BSL, formerly known as Essar Steel Chhattisgarh, has not yet commenced business operations.
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