Arcelor-Mittal bids for India's Sesa Goa
Afp, New Delhi
The world's largest steel manufacturer Arcelor-Mittal has bid to buy a controlling stake in Sesa Goa Ltd, one of India's leading iron exporters, according to a report Thursday. The Hindustan Times, quoting unnamed investment banking sources, said Arcelor-Mittal has submitted a non-binding offer for the company. Arcelor-Mittal is seeking to secure a foothold in India and the acquisition would help it meet its iron ore needs for its European operations, the newspaper said. It added that the European company might also use the ore to set up a greenfield project in India. Rio Tinto and Brazil's CVRD have also joined the race and bids through investment banker JM Morgan Stanley, the newspaper said. The bids value the company at between 75 billion rupees and 85 billion rupees (1.7 billion to 1.9 billion dollars), the Hindustan Times said. In addition to purchasing the 51 percent stake, the buyer would then have to pay for another 20 percent to make an open offer required under Indian takeover regulations, the paper said.
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