ArcelorMittal’s Essar bid

ArcelorMittal (MT), the world’s biggest steel producer, has put in a bid to acquire Essar Steel, a bankrupt steel company in India (EPI) (INDA). While the acquisition has faced several regulatory hurdles, ArcelorMittal got a break last week when one of India’s bankruptcy courts approved the company’s bid.

Indian Courts Add Another Twist to ArcelorMittal’s Essar Bid

Ruias in the fray too

The road to acquiring Essar Steel still isn’t smooth for ArcelorMittal. An Indian court has now said that it could look at permitting Ruias, which ran Essar Steel prior to its bankruptcy, to also bid for the company. However, it has also asked Essar Steel Asia Holdings (or ESAH) to first clear Essar Steel’s bad debts.

The tribunal has also chided ArcelorMittal, as it sees its offer for Essar Steel lower than what ESAH is offering. The court asked, “That is a basic question—if parties are ready to pay Rs 54,000 crore, why don’t you?”


ArcelorMittal has been looking at growth through acquisitions. Along with Essar Steel, the company also bid for Ilva in Italy. The Indian steel market is expected to witness strong growth in the coming years and is considered to be the next bright spot as China’s steel demand growth rates taper down. ArcelorMittal has a long track record of acquisitions that have catapulted the company to the top steelmaker slot.

As global steel markets have been strong over the last three years, ArcelorMittal has managed to repair its balance sheet. Asset sales and a share issuance also help it bolster its balance sheet. The company has also reinstated its dividends.

Read ArcelorMittal: Analysts See Massive Upside to see how analysts view ArcelorMittal.

Latest articles

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.