India’s JSW Steel, ArcelorMittal Nippon Steel Limited (AMNS) and a clutch of private equity investors are in line to pick up the iron ore and steelmaking assets controlled by the Vedanta Group in the country, industry sources said on Friday, October 13.
The Vedanta Group controls iron ore assets in Karnataka and Goa along with ESL Steel Limited which operates a 2.5 million mt per year capacity integrated steel mill in the eastern state of Jharkhand.
The Vedanta Group has already announced its intention to exit its steel and allied assets and to focus on non-ferrous metals, power, aluminium and gas businesses through demerger of the present entities controlling these assets.
The Group had acquired ESL Steel Limited in 2018 through the bankruptcy resolution process.
Though neither JSW Steel Limited nor AMNS have officially commented, industry circles said that the iron ore assets of Vedanta in Karnataka will be synergistic with JSW Steel Limited’s steel mill operations in Karnataka and Goa state.
At the same time, the possible acquisition of ESL Steel Limited along with its captive iron ore mines will enable AMNS to gain a footprint in the east as its present operations are confined to Hazira in the western state of Goa.