ArcelorMittal SA is seeking approval from EU regulators after it made a bid to buy French steel assets from troubled tycoon Sanjeev Gupta.
According to European Commission documents, steel giant Liberty Steel is planning to buy a majority of shares in France Holding SAS, which owns the Escoval and Heinz plants.
The mills sought creditor protection in April amid a financial crunch in Gupta’s GFG Alliance, which owns the assets.
Gupta is struggling to refinance his metals empire following the collapse of his biggest lender Greensil Capital.
GFG is now the target of a UK investigation into possible fraud and money laundering, which thwarted an attempt from White Oak Global Advisors LLC to secure new working capital for its British businesses.
A spokesperson for ArcelorMittal confirmed that it had bid for the properties and said it planned to invest in them.
A spokesperson for Liberty Steel, GFG’s steel arm, said it was taking “prudent steps to explore sale options for these businesses” after they faced “a significant reduction in working capital support since the collapse of Greensill Capital.”
News Source: ConstructionWorld
