India’s ArcelorMittal Nippon Steel India (AMNS) has taken control of a 16 million mt per year capacity iron ore terminal at state-run Vishakhapatnam Port from a unit of Essar Group, after the long-pending security clearance from the government was received for a deal announced in 2022, industry circles said on Wednesday, April 17.
AMNS received security clearance in early March this year, after which the Essar unit was relieved of its duties as the promoter and operator of the terminal, the sources said.
Visakhapatnam Port Authority also collected about INR 540 million ($6.5 million) from the Essar unit before allowing the change in the terminal’s shareholding.
Despite the deal being announced in 2022, the acquiring entity was unable to assume control until it obtained security clearance from the Indian government, as per the rules of the concession agreement.
In 2022, AMNS India acquired various port, power, and other logistics and infrastructure assets from Essar Group for $2.05 billion which were integral to the Essar steel mill plant at Hazira, acquired through the bankruptcy resolution process.