ArcelorMittal bids $673 million to acquire Essar Mahan MW power plant

• 5 years ago (2019-02-19)
• David Flin

Asia 892 Coal 296

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Arcelor Mittal, the world’s biggest steelmaker, has bid $673 million to acquire Essar’s 1200 MW coal-fired Essar Mahan power plant in Madhya Pradesh, India. Essar’s creditors are selling many of the debt-ridden groups assets to recover billions of dollars of loans.

Power Finance Corporation (PFC), owned by the Indian Government, is the lead creditor of the power plant. Rajeev Sharma, Chairman of PFC, said that the Essar family had made a 35 billion rupee ($490 million) bid for the plant, but the bid from ArcelorMittal was 37 per cent higher. Sharma said that PFC has yet to decide on either offer for the Mahan power plant, which has debt of 74 billion rupees ($1.04 billion).

ArcelorMittal declined to comment, and Essar was not available for comment.