Nippon Steel joint venture to be equity accounted: ArcelorMittal

Mumbai: ArcelorMittal and Nippon Steel's joint ownership of Essar Steel will be funded by a combination that will involve one-third equity and two-thirds debt, ArcelorMittal said Thursday, replying to investor queries after it announced fourth-quarter earnings.

The two companies signed a joint venture agreement on January 22, and ArcelorMittal has said that its investment in the JV will be “equity accounted”.

The joint venture between the Lakshmi Mittal-led steel major and Japan’s largest maker of the alloy will be paying Rs 50,000 crore for Essar Steel, which will involve an upfront payment of Rs 42,000 crore.