Three people familiar with the matter said that ArcelorMittal is in talks to buy Karnataka based Bellary Steels & Alloys Ltd, which has been taken over by its lenders after failing to convince them to waive a part of its INR 2,600 crore debt and restructure the rest.
Bellary Steels has a total debt of about INR 2,600 crore and accumulated losses of about INR 300 crore.
Mr A Mallikarjunappa GM (finance) also confirmed the development. Mr Mallikarjunappa told NewsWire18 on phone that “ArcelorMittal is in talks with the lenders directly, so I do not have details of the talks.”
Bellary has about 1,150 acres and its purchase will give the world’s largest steel maker a head start in Karnataka, where it plans to set up a 6 million tonnes per year steel plant.
An analyst with a Mumbai based brokerage said that “It obviously takes care of the biggest hurdle any industrial project today faces.”