AM/NS India eyes $250-300 mn gain from Essar group infra assets

ArcelorMittal Nippon Steel India (AM/NS India) expects annual synergies of $250-300 million from the proposed acquisition of infrastructure assets of the Essar group. AM/NS India and the Essar Group recently announced a definitive agreement for the joint venture of global steelmakers to acquire port and energy assets worth approximately $2.4 billion. The assets mainly relate to AM/NS's Hazira steel mills in Gujarat, and profits will be substantial once the transaction is completed. Amit Harlalka, deputy finance director of AM/NS India, stated that profits of $250-300 million were expected at the current level of steel capacity, which is nine million tons per year (MTPA).