MUMBAI: Sanjeev Gupta led Liberty House will be buying ArcelorMittal’s steel plants in Europe that the world’s largest steelmaker has put on the block to clear its way to buy Italian steel company Ilva, Liberty House announced on Friday.
The steelmaker has made a binding offer to buy ArcelorMittal’s major integrated works at Galati in Romania and Ostrava in Czech Republic, along with rolling mills at Skopje in Macedonia and Piombino in Italy; a move that will more than double its global production capacity.
The four facilities will together add 8 MT rolling capacity to Liberty House and take it to 15 MT a year apart from adding 12,500 people to its total workforce. The plants serve domestic and wider European markets, including automotive, construction, industrial machinery and oil and gas sectors.
The announcement follows another recent announcement by Liberty House of acquiring France’s last remaining aluminium wheelmaker as well as to purchase Europe’s largest aluminium smelter at Dunkerque.
“At a stroke these acquisitions would almost double the size of our workforce and global production capacity, giving us a strong presence in the heart of Europe’s key manufacturing regions,” executive chairman of GFG Alliance, Sanjeev Gupta said in a release. GFG Alliance is the parent company of Liberty House. “We intend to work with local partners to position ourselves strongly within the domestic supply chains of these fast-expanding national economies and become a pivotal part of a thriving European industrial sector,” Gupta added.
ArcelorMittal had bagged Ilva from the Italian government last year, in a deal amounting to 1.8 billion Euros. JSW Steel was also interested in buying the plant which is the biggest by output in the continent.
However, the European Union (EU) antitrust regulators were concerned that the acquisition would reduce competition in some flat carbon steel products and result in higher prices in southern Italy. This resulted in AM deciding to sell off a large capacity to allay the regulators’ worries.
Back home, Liberty House has already bagged Amtek Auto and Adhunik Metaliks under the insolvency law and has put in binding bid for Bhushan Power and Steel which is still awaiting a final order. ET reported on Friday that the company has also submitted an Expression of Interest (EoI) for two of Uttam Galva Steels’ debt-ridden subsidiaries – Uttam Value Steels and Uttam Galva Metallics.
Source: Economic Times