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CCI approves acquisition of Essar’s assets by AM/NS India
Real Estate

CCI approves acquisition of Essar’s assets by AM/NS India

The proposed combination involves the acquisition of certain assets (a) Power Assets (Essar Power Hazira (EPHL), Gandhar Hazira Transmission (GHTL)); (b) Port Assets (Hazira Cargo Terminals (HCTL), Ibrox Aviation & Trading (IATPL), Essar Bulk Terminal (EBTL), Essar Bulk Terminal Paradip (EBTPL), Essar Vizag Terminals (EVTL)); (c) Other Assets (Snow White Agencies (SWAPL), Bhagwat Steel (BSL)) from the Essar Group (EG/ Target) by ArcerlorMittal Nippon Steel India (AMNS/ Acquirer). All these target assets belong to the Essar Group. AMNS is a Joint Venture between ArcelorMittal S.A. (AM) and its affiliates and Nippon Steel Corporation, Japan (NSC).

EPHL is a power plant adjacent to AMNS, Hazira, Gujarat and comprises two generation units of 135-MW capacity each and is used by the acquirer for captive purposes.

GHTL is a public company incorporated to carry out the business of prospecting, exploring, mining, processing, buying, selling, distributing, and generally dealing in all minerals, including coal, and also dealing in the generation, purchase, transmission, distribution, and sale of electricity. It has 400 kV transmission line from Gandhar (NTPC) switchyard to Hazira having a length of 104.6 km which is used by Acquirer for captive purposes.

EBTL has an-all weather, deep draft dry bulk jetty located in the Gulf of Khambatt, Magdalla Port terminal of Gujarat Maritime Board (GMB) with a capacity of under 25 million metric tonnes per annum (MMTPA). It provides the following facilities: (i) cargo handling services; (ii) jetty services; (iii) vessel handling services; (iv) pilotage; and (v) towage and is used by the Acquirer for captive purposes.

EBTPL has an all-weather dry bulk terminal licensed from Paradip Port Trust (PPT) with a capacity of 8 MMTPA. It has a fully mechanized ship loading system with a capacity of 4,500 tonnes per hour (TPH). It provides the following services (i) bulk cargo handling; and (ii) mooring services and is used by the Acquirer for captive purposes.

EVTL is the concessionaire of an all-weather, deep-water terminal under Visakhapatnam Port Trust (VPT) with an existing capacity of 12 MMTPA.

HCTL is the holding company of EBTL and EBTPL. HCTL, through its holding in EBTL and EBTPL, specializes in the development and operations of ports and terminals for handling bulk and general cargo. HCTL through its subsidiaries has an existing capacity of 66 metric tonnes per annum (MTPA) in India.

IATPL is a holding company and does not have any business operations.

SWAPL is a private company, it owns a land parcel in Odisha along with an office and a guest house. The office and the guest house are primarily used by the Acquirer’s employees.

BSL previously known as Essar Steel Chhattisgarh, has not commenced any business operations.

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The proposed combination involves the acquisition of certain assets (a) Power Assets (Essar Power Hazira (EPHL), Gandhar Hazira Transmission (GHTL)); (b) Port Assets (Hazira Cargo Terminals (HCTL), Ibrox Aviation & Trading (IATPL), Essar Bulk Terminal (EBTL), Essar Bulk Terminal Paradip (EBTPL), Essar Vizag Terminals (EVTL)); (c) Other Assets (Snow White Agencies (SWAPL), Bhagwat Steel (BSL)) from the Essar Group (EG/ Target) by ArcerlorMittal Nippon Steel India (AMNS/ Acquirer). All these target assets belong to the Essar Group. AMNS is a Joint Venture between ArcelorMittal S.A. (AM) and its affiliates and Nippon Steel Corporation, Japan (NSC). EPHL is a power plant adjacent to AMNS, Hazira, Gujarat and comprises two generation units of 135-MW capacity each and is used by the acquirer for captive purposes. GHTL is a public company incorporated to carry out the business of prospecting, exploring, mining, processing, buying, selling, distributing, and generally dealing in all minerals, including coal, and also dealing in the generation, purchase, transmission, distribution, and sale of electricity. It has 400 kV transmission line from Gandhar (NTPC) switchyard to Hazira having a length of 104.6 km which is used by Acquirer for captive purposes. EBTL has an-all weather, deep draft dry bulk jetty located in the Gulf of Khambatt, Magdalla Port terminal of Gujarat Maritime Board (GMB) with a capacity of under 25 million metric tonnes per annum (MMTPA). It provides the following facilities: (i) cargo handling services; (ii) jetty services; (iii) vessel handling services; (iv) pilotage; and (v) towage and is used by the Acquirer for captive purposes. EBTPL has an all-weather dry bulk terminal licensed from Paradip Port Trust (PPT) with a capacity of 8 MMTPA. It has a fully mechanized ship loading system with a capacity of 4,500 tonnes per hour (TPH). It provides the following services (i) bulk cargo handling; and (ii) mooring services and is used by the Acquirer for captive purposes. EVTL is the concessionaire of an all-weather, deep-water terminal under Visakhapatnam Port Trust (VPT) with an existing capacity of 12 MMTPA. HCTL is the holding company of EBTL and EBTPL. HCTL, through its holding in EBTL and EBTPL, specializes in the development and operations of ports and terminals for handling bulk and general cargo. HCTL through its subsidiaries has an existing capacity of 66 metric tonnes per annum (MTPA) in India. IATPL is a holding company and does not have any business operations. SWAPL is a private company, it owns a land parcel in Odisha along with an office and a guest house. The office and the guest house are primarily used by the Acquirer’s employees. BSL previously known as Essar Steel Chhattisgarh, has not commenced any business operations. Also Read AMNS India to invest USD $1 billion in downstream industry Debenture holders file case against real estate firm Peninsula Land

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