Japan's biggest steelmaker Nippon Steel Corp. and multinational giant ArcelorMittal S.A. said Monday they have completed the purchase of Essar Steel India Ltd. for 500 billion rupees ($7 billion).
ArcelorMittal now owns a 60 percent stake in Essar Steel, which was in insolvency proceedings and gained approval last month for its restructuring plan from the Indian top court, and Nippon Steel holds the remainder.
The two steelmakers last year reached a basic agreement to buy Essar Steel, banking on potential demand for steel in the infrastructure-hungry South Asian country.
Essar Steel, established in 1976 and based in Gujarat state, had been a major producer of construction materials but commenced bankruptcy proceedings in 2017.
The Tokyo- and Luxembourg-based steelmakers have had a strong record of cooperating in overseas ventures, including jointly operating steel plants in the United States with one venture dating back to 1987.
Nippon Steel will hold a press conference on the completion of the purchase on Tuesday.
© Kyodo News International, Inc., source Newswire