Finally, Essar Steel has been acquired by Arcelor Mittal - 16.12.2019
17 Dec, 2019
17 Dec, 2019
a) Today is the historic day for IBC( Insolvency & Bankruptcy Code) as the Essar Steel case was resolved after two years of long battle. This is important as the debt involved was ~Rs.42000 Crores. This is one of the biggest recoveries for the IBC to date. With this money coming back into the system, the balance sheet of the banks will improve. Especially for SBI, which has lent ~Rs.15000 Crores to Essar Steel. The resolution of such NPAs will impact positively to the overall growth of the economy. The banks will get more money in their hands to lend to different projects which will drive the growth in the coming time.
b) After the acquisition, Arcelor Mittal will hold 60% shares and Nippon Steel will hold 40% shares.
c) The company will also invest Rs.8000 Crores more into Essar Steel for the operational working of the company.
d) This early acquisition is good news for the shareholders of the company as they will get professional management and value for their investment in the coming time.
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