By WSJ Staff

ArcelorMittal (MT) said it has been selected as the preferred bidder by creditors of Essar Steel India Ltd., or ESIL, which is in insolvency proceedings.

Luxembourg-based ArcelorMittal, one of the world's largest steel makers, said in a news release that it was informed of the decision by the creditors committee for the Indian company. ArcelorMittal said it would enter into further final negotiations with the committee.

ArcelorMittal hasn't disclosed the exact value of its bid but has confirmed that media reports of a $5.8 billion price tag for ESIL are broadly accurate.

On Wednesday, the steel maker said it agreed to pay around $1 billion to clear the debts of two other Indian steel companies so that it could proceed with its bid for ESIL.

India's Supreme Court ruled this month that the European steelmaker had to pay off the debts of Uttam Galva and KSS Petron--two companies in which it previously held stakes--before its ESIL bid could be considered.

ArcelorMittal's main rival in the bidding process has been Numetal, a recently formed entity with ties to the Essar group's founding Ruia family and backed by Russia's VTB Bank (VTBR.MZ).

--Nathan Allen contributed to this article.

 

(END) Dow Jones Newswires

October 20, 2018 03:39 ET (07:39 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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