Global steel giant ArcelorMittal has decided to curtail M&A and new investment activities following tough economic and market conditions.
World's largest steelmaker ArcelorMittal may set up a solar farm on land alloted to it for the proposed 6 MT Karnataka project in view of excess global steel capacity and delays in securing raw materials.
However, the Luxembourg-based firm had posted net loss of USD 6,886 million in the year-ago period.
Forbes India has released the annual India rich list and Reliance Industries' Chairman Mukesh Ambani has topped the Forbes' '100 Richest Indians' list with a net worth of USD 22.7 billion.
"ArcelorMittal welcomed Singh, SAIL Chairman and Steel Ministry's Joint Secretary Sunil Barthwal to its London offices for discussions regarding the proposed USD 1 billion automotive steel JV between ArcelorMittal and SAIL," it added.
ArcelorMittal SA (AMSA), the South African subsidiary of Lakshmi Mittal's steel empire, will pay 1.5 billion rand (USD 110-million) fine for colluding to fix steel prices, the country's Competition Commission (CC) said as it sent out a firm message about its opposition to cartels.
Mittal had acquired the former state-owned steelmaker Iscor a decade ago as he embarked on his global steel acquisition plans after first coming to the rescue of the ailing company to turn it around.
In May last year, NRI billionaire Lakshmi Mittal-led ArcelorMittal and domestic steel giant SAIL inked a memorandum of understanding to look at the possibility of setting up an automotive steel plant in the country through a JV.
ArcelorMittal today said its net loss narrowed down to USD 416 million (about Rs 2,766 crore) in the quarter ended March 31, but the steel giant reported a rise in debt to USD 17.3 billion during the period.
This facility will be secured by inventory and certain other working capital and related assets of ArcelorMittal USA and certain of its subsidiaries in the US, the firm said in a regulatory filing.
The deal will help the Luxembourg-based steel maker to reduce its debt that stood at USD 15.7 billion for the quarter ended December 2015.
Billionaire Lakshmi Mittal-led firm reported a net loss of USD 7.9 billion in 2015 mostly because of a USD 4.8 billion writedown on iron ore mining business and a USD 1.3 billion charge on inventory due to the global steel price plunge.
The fallout once again became clear on Friday, when the world's largest steel maker ArcelorMittal reported an annual loss of close to USD 8 billion in 2015, forcing the shares of the group down over 6 percent to the bottom of the pan-European STOXX 600, adding to the 60 percent losses seen in the last year.
In July this year, Mittal was reported to have been in urgent talks with the same South African government which sold its steel company Iscor to him a decade ago to come to his rescue amid huge challenges facing the international steel industry.
The firm, controlled by NRI billionaire Lakshmi Mittal, had clocked a net profit of USD 52 million in the year-ago period, it said in a statement.
ArcelorMittal SA, South Africa's biggest steel manufacturer, has been bleeding for some time now due to the global slump in steel demand and cheap imports from China.
The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to IndiaÂ’s rapidly growing automotive sector.
Net sales of the steel major fell by 13.5 percent to USD 17.12 billion during January-March from USD 19.79 billion in the same quarter last fiscal.
Among the 90 Indians on the Forbes Rich List 2015, published on Monday, Ambani (39th globally) is closely followed by pharmaceuticals business tycoon Dilip Shanghvi (44th rank with networth of USD 20 billion) and Azim Premji (48th with USD 19.1 billion).
The company, controlled by NRI billionaire Lakshmi Mittal, had reported USD 1.2 billion net loss in the October-December quarter of the last year, it said in a statement.
2014 was a glitzy year for this man. With a net worth of USD 18 billion, 59-year-old Shanghvi became the second richest man in India, out-ranking Lakshmi Mittal on the Forbes India Rich List this year. Sun Pharma, a small start-up in 1983, leapfrogged to become the largest pharma company in India and fifth largest in the world.
The company, which makes 6-7 percent of the world's steel and is a broad gauge for the health of global manufacturing, said global steel consumption should increase by between 3.5 and 4 percent in 2014 from about 3.5 percent last year.
After a rather bitter experience in Odisha, where Arcelor Mittal decided to pull out of its Rs 60,000 crore 12 MTPA (million donnes per annuam) steel plant due to severe delays in regulatory clearances and land allocation, Lakshmi Mittal is not gung- ho about India anymore.
The Forbes India rich list shows modest gains for India's richest due to a stumbling economy. Steel magnate Lakshmi Mittal also retains his No.2 position on the rich list with a wealth of USD 16 billion.
Lakshmi Mittal's ArcelorMittal might shelve another of its two planned mega steel projects in India following the exit of some of its senior executives, including Sanak Mishra, CEO of Greenfield Projects.