Nippon Steel Completed joint acquisition of Indian steel giants December 17 13:43
Nippon Steel announced that it has completed the acquisition of an Indian steel giant, which it has been working with other steel manufacturers. The acquisition amount is approximately 770 billion yen, and Nippon Steel will open up the Indian market where steel demand is expected to grow in the future.
Nippon Steel held a conference on the 17th and announced that the acquisition of Essar Steel, the fourth-largest steel manufacturer in India, which was promoted together with the world's largest steel manufacturer, Arcelor Mittal, was announced.
The acquisition amount was approximately 770 billion yen, which was acquired through a joint venture in which Nippon Steel made 40% and Arcelor Mittal owned 60%.
This is the largest ever acquisition of an overseas company by Nippon Steel.
In the steel industry, while iron ore, which is the raw material for iron, has soared, the global economic slowdown against the backdrop of trade friction in the United States and China has led to a decrease in demand for steel products for automobiles, and the harsh business environment has continued. The
In India, demand for steel products is expected to grow due to infrastructure development such as railways and roads.
With this acquisition, Nippon Steel will be able to consistently handle the production and sales of steel products, particularly in the western part of India, where steel demand is high. .
“I would like to take India's growth as an important opportunity and aim to become the world's number one steel manufacturer,” said Nippon Steel's Managing Executive Officer Hidei Ishihara.