The World's largest steel maker ArcelorMittal is close to acquiring the beleaguered Essar Steel (ESL) after the National Company Law Tribunal (NCLT) approved its Rs 42,000 crore takeover offer on March 8. The entry of steel baron L.N. Mittal's firm as a steel manufacturer in India will change many industry dynamics.
The Indian industry, controlled as it is by domestic players -- mainly SAIL, Tata Steel and JSW Steel - will be exposed to the global way of doing things in raw material sourcing, pricing and scaling up. ArcelorMittal acquires ESL along with partners Nippon Steel and Sumitomo Metal. All three are the best with their steel making technology and will pose a threat to domestic players. Besides, L.N. Mittal is entering India after many failed attempts in the last 15 years. The acquisition is, in a way, his foray into the Indian billionaires club, too.