Last month, India's Supreme Court had cleared the way for ArcelorMittal to take over Essar Steel following a legal tussle that dragged through multiple courts for over two years.ArcelorMittal and Nippon Steel had bid jointly for Essar, which has a capacity of 10 million tonnes of steel per year.
ArcelorMittal will have a 60% stake in the new venture - ArcelorMittal Nippon Steel India Ltd - the world's biggest steelmaker said in a statement.
The new company aims to export up to 15 million tonnes of finished steel.
Essar Steel, which had debts of nearly 500 billion rupees ($7 billion), was among twelve large steel and infrastructure companies that were referred to India's bankruptcy court in 2017.
(Reporting by Neha Dasgupta and Promit Mukherjee. Editing by Jane Merriman)