Shearman & Sterling advised ArcelorMittal on its acquisition of Essar Steel India Limited (ESIL) in a joint venture with Nippon Steel Corporation. The deal was completed on December 16, 2019. ArcelorMittal holds 60 percent of the joint venture, with Nippon Steel Corporation holding the remaining 40 percent.
The joint venture company, AMNS Luxembourg Holding S.A, will own and operate ESIL through its indirect subsidiary, ArcelorMittal India Private Limited. ESIL will be renamed ArcelorMittal Nippon Steel India Limited.
The acquisition is seen as an important strategic step for ArcelorMittal in establishing a meaningful production presence in India, a fast-growing economy where demand for industrial metal is projected to boom.
Additionally, the acquisition provided one of the first tests of India’s new Insolvency and Bankruptcy Code, which is intended to bring progressive reform to the country’s insolvency processes.