Steel tzar vs rice king: NRI tycoons in UK court battle
4 March 2013 5:43 AM IST
The stage is set for a clash of India-born tycoons in Britain as steel magnate Lakshmi N Mittal appears in the high court here this week over an oil deal with a rice baron. Mittal, UK's richest man and chairman and CEO of ArcelorMittal, is being sued by his former friend and fellow millionaire Moni Varma over allegations that Mittal reneged on an agreement to pay fees on a deal he brokered for him in oil-rich Nigeria.
The case, which begins on Tuesday, has created a stir here as it is likely to offer a rare glimpse into the workings of one of Britain's largest business empires as well as a possible cross-examination of 63-year-old Mittal, who is worth an estimated £12.7 billion. In documents presented to the court, Varma claims to have facilitated a deal in 2006 for Mittal to access two unexplored oil fields in the Niger Delta, and to have arranged a meeting with former Nigerian president Olusegun Obasanjo.
'Varma's claim is an opportunistic and speculative piece of litigation brought on a conditional fee agreement, which Mr Mittal denies in its entirety and intends to vigorously defend,' a spokesperson for Mittal said. India-born and London-based Varma, 64, one of Britain's biggest rice traders, says, 'Let the courts decide if my claim is legitimate or not. My intention is not to malign anybody.'
According to the Guardian, his writ details how the two businessmen have known each other socially since 1997 and regularly discussed business opportunities at social events in London. In July 2005 Mittal Investments Sarl, a company owned by Mittal, launched a joint venture with ONGC Videsh Ltd (OVL), the overseas arm of India's state-run Oil and Natural Gas Corporation (ONGC).
A month later Mittal and Varma met for dinner at an Indian restaurant in Knightsbridge and discussed possible deals in Nigeria. In September 2005, claims Varma, the pair had a conversation that is at the heart of the case: how much Varma would be paid if the deal came through. According to the writ, Mittal responded, 'I will cover you' or 'you will be covered. The reward could be even bigger than 15 per cent, depending on the size of the deal'.However, Varma, often referred to as 'rice king' in the UK, alleges that over the following six months he was cut out of the deal. Mittal's joint venture with the Indian government was successful in its bids for two licences for 10 years in downstream projects in Nigeria.
The anticipated combined yield of the blocks was 650,000 barrels a day and the value of the downstream projects is an estimated $6 billion. Mittal's lawyers are expected to argue that Varma was a social acquaintance of their client, and that Varma offered to arrange a meeting with Obasanjo, but dispute Varma's recollection of the conversation in September 2005.
ARCELORMITTAL TARGETS 15-MT ORE CAPACITY IN LIBERIA BY 2015
World’s largest steel maker ArcelorMittal has said its board has approved plans for the second phase of its mining operations in Liberia that will augment iron ore capacity to 15 million tonnes by 2015.
The company said it has invested over $1 billion in development of its operations in the African nation so far.
‘For the second phase of the project, annual capacity of the iron ore mine will increase from four million tonnes a year to 15 million tonnes a year in 2015,’ the steel giant said.
It said the increase in capacity, which will also mean an increase in job opportunities for Liberians, will be accomplished through investment in an iron ore concentrator, expansion of the port facilities in Buchanan as well as increased utilisation of rail capacity.
‘This is an important step forward for the growth of our mining operations in Liberia as well as for the development of Liberia. It is a clear sign that ArcelorMittal is committed to building a world-class mining operation in Liberia,’ commented CEO, ArcelorMittal Liberia, Antonio Maria.
The investments in Liberia, as per the company, included the rehabilitation of the railway from Yekepa and the port facilities in Buchanan, besides construction of hospitals and schools in its concession areas.
The company, however, did not mention any estimate of fresh investments.
‘Phase two will result in further investment in the port, mainly through a new fixed ship loader that will have a loading capacity of 6-8,000 tonnes of iron ore per hour, and the construction of concentrator at the mine site in Yekepa which will produce iron ore pellets enabling ArcelorMittal to increase its production capacity to 15 million tonnes per year,’ the company said.
The case, which begins on Tuesday, has created a stir here as it is likely to offer a rare glimpse into the workings of one of Britain's largest business empires as well as a possible cross-examination of 63-year-old Mittal, who is worth an estimated £12.7 billion. In documents presented to the court, Varma claims to have facilitated a deal in 2006 for Mittal to access two unexplored oil fields in the Niger Delta, and to have arranged a meeting with former Nigerian president Olusegun Obasanjo.
'Varma's claim is an opportunistic and speculative piece of litigation brought on a conditional fee agreement, which Mr Mittal denies in its entirety and intends to vigorously defend,' a spokesperson for Mittal said. India-born and London-based Varma, 64, one of Britain's biggest rice traders, says, 'Let the courts decide if my claim is legitimate or not. My intention is not to malign anybody.'
According to the Guardian, his writ details how the two businessmen have known each other socially since 1997 and regularly discussed business opportunities at social events in London. In July 2005 Mittal Investments Sarl, a company owned by Mittal, launched a joint venture with ONGC Videsh Ltd (OVL), the overseas arm of India's state-run Oil and Natural Gas Corporation (ONGC).
A month later Mittal and Varma met for dinner at an Indian restaurant in Knightsbridge and discussed possible deals in Nigeria. In September 2005, claims Varma, the pair had a conversation that is at the heart of the case: how much Varma would be paid if the deal came through. According to the writ, Mittal responded, 'I will cover you' or 'you will be covered. The reward could be even bigger than 15 per cent, depending on the size of the deal'.However, Varma, often referred to as 'rice king' in the UK, alleges that over the following six months he was cut out of the deal. Mittal's joint venture with the Indian government was successful in its bids for two licences for 10 years in downstream projects in Nigeria.
The anticipated combined yield of the blocks was 650,000 barrels a day and the value of the downstream projects is an estimated $6 billion. Mittal's lawyers are expected to argue that Varma was a social acquaintance of their client, and that Varma offered to arrange a meeting with Obasanjo, but dispute Varma's recollection of the conversation in September 2005.
ARCELORMITTAL TARGETS 15-MT ORE CAPACITY IN LIBERIA BY 2015
World’s largest steel maker ArcelorMittal has said its board has approved plans for the second phase of its mining operations in Liberia that will augment iron ore capacity to 15 million tonnes by 2015.
The company said it has invested over $1 billion in development of its operations in the African nation so far.
‘For the second phase of the project, annual capacity of the iron ore mine will increase from four million tonnes a year to 15 million tonnes a year in 2015,’ the steel giant said.
It said the increase in capacity, which will also mean an increase in job opportunities for Liberians, will be accomplished through investment in an iron ore concentrator, expansion of the port facilities in Buchanan as well as increased utilisation of rail capacity.
‘This is an important step forward for the growth of our mining operations in Liberia as well as for the development of Liberia. It is a clear sign that ArcelorMittal is committed to building a world-class mining operation in Liberia,’ commented CEO, ArcelorMittal Liberia, Antonio Maria.
The investments in Liberia, as per the company, included the rehabilitation of the railway from Yekepa and the port facilities in Buchanan, besides construction of hospitals and schools in its concession areas.
The company, however, did not mention any estimate of fresh investments.
‘Phase two will result in further investment in the port, mainly through a new fixed ship loader that will have a loading capacity of 6-8,000 tonnes of iron ore per hour, and the construction of concentrator at the mine site in Yekepa which will produce iron ore pellets enabling ArcelorMittal to increase its production capacity to 15 million tonnes per year,’ the company said.
Next Story
