JSW Steel and ArcelorMittal in race to acquire Vedanta mines and steel plant

JSW Steel and ArcelorMittal are bidding to buy iron ore mines and a steel plant owned by ESL Steel, part of Vedanta Ltd, owned by mining industry magnate Anil Agarwal, some sources said.

The Vedanta group has indicated an enterprise valuation of Rs10,000 billion for these assets, while potential buyers are seeking a lower valuation, sources said.

Vedanta had entered the sector by taking over ESL Steel, which owned the plant, under the Insolvency and Bankruptcy Code in June 2018. But as debt concerns mounted, the London Stock Exchange (LSE)-listed company began exploring the possibility of selling the asset, sparking controversy over its valuation. The final purchase price is likely to be determined by negotiations between Vedanta and potential buyers of ESL Steel assets.