Financial Express reported that JSW Steel, which did not bid for Essar Steel in the first round, has confirmed it was partnering with Numetal Steel.
JSW Steel decided to join the battle for Essar Steel assets after Numetal approached the company, and it does not foresee any monopoly scenario arising with it coming as an investor along with Numetal to bid for Essar Steel. Responding to FE’s queries on what made the company change its mind to participate in the Essar Steel bid, Seshagiri Rao, joint managing director and group CFO, JSW Steel, said the decision to bid along with Numetal was finalised in two-three day.
Mr Rao told “This was the last asset available under IBC which we were interested in, but we were not allowed and there was no chance to participate. Then Numetal approached us and the opportunity came back, so we decided to go ahead…it was all decided in just two to three days.”
Commenting on JSW Steel coming into the fray for the beleaguered company, ArcelorMittal said in a statement: “JSW joining Numetal is clearly a defensive move — they don’t want competition. But competition is good for the country’s industry and good for consumers. Also, India has an ambitious target to increase its steel production to 300 million tonnes. It needs new players to achieve that. We continue to believe ArcelorMittal and Nippon are the strongest possible partner for Essar.”
Source : Financial Express