ArcelorMittal is exploring a joint offer with Resurgent Power Ventures Pte to buy an Essar Power generation plant in India, according to the report from the Bloomberg.
The companies have held preliminary talks on a potential joint bid for the 1,200-megawatt power plant in Madhya Pradesh, said the Blooberg.
Arcelor had previously made a non-binding offer of Rs 4,800 crore ($690 million) for the asset, reported by Bloomberg in February.
Adding Resurgent Power to the bid would help Arcelor, the world’s largest steel producer, gain control of the power plant without putting as much strain on its balance sheet.
Deliberations on the joint offer are still ongoing, and there’s no certainty a deal for the power plant will emerge, the sources said.
Arcelor, led by steel tycoon Lakshmi Mittal, and the Essar group’s founding family have been slugging it out in court for control of Essar Steel India Ltd., which was being sold under India’s bankruptcy process.
The Madhya Pradesh power plant, which supplies electricity to Essar Steel, would boost Arcelor’s attempts to gain a foothold in the Indian market.
The plan was halted by the nation’s top court last month pending a review by a bankruptcy tribunal hearing appeals.