Arcelor Mittal Strikes $5B Deal With Rival Nippon Steel

ArcelorMittal SA said on Friday that its Indian steelmaking joint venture with Asian rival Nippon Steel Corp has secured a $5 billion financing from a syndicate of Japanese lenders.

The revenues would be used to increase the JV's annual steelmaking capacity at its Hazira facility in India to 15 million tonnes from 9 million tonnes, according to a statement from the European steelmaker.

The expansion would entail the establishment of downstream rolling and finishing facilities for a variety of industries, including defence, automotive, and infrastructure, and would create 60,000 employees, according to the company.

The AM/NS India joint venture is owned by AMNS Luxembourg Holding SA, in which ArcelorMittal owns 60% and Nippon Steel owns the balance.

Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Trust Bank, Mizuho Bank, and Mizuho Bank Europe NV are among the Japanese banks.