Jindal Steel & Power's (JSPL) attempts to acquire Zimbabwe Iron & Steel Company (Ziscosteel) have turned futile as the Zimbabwe Government has decided against selling of Ziscosteel to companies such as JSPL and Arcelor Mittal.

The technical team which analysed the bids of potential companies has recommended not to accept these proposals as the interests of the bidders could overwhelm Ziscosteel and work against the wishes and interests of the country.

JSPL and Arcelor Mittal were among the main prospective companies in race to acquire Ziscosteel, which is 89 per cent owned by the Zimbabwe Government.

Ziscosteel has debt of around $300 million (approx Rs 1,390 crore) and its plant had stopped operations in 2008 following the global slowdown. Apart from the steelworks, Ziscosteel also owns an iron ore mine in Zimbabwe.

In early 2010, the Zimbabwe Government had made an announcement to privatise Ziscosteel to revive its fortunes.

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JSPL to acquire Oman's Shadeed Iron (30-April-10)