Tata Steel Ltd. has announced that it will acquire the steel business of Usha Martin Ltd. for Rs 4,300-4,700 crore.
Usha Martin, in a stock exchange filing, said the sale of steel business to Tata Steel will help the company in “significant reduction” of debt. The deal is expected to be completed in 6-9 months, it added.
Tata Steel, in a release, said it has executed definitive agreements for acquisition of the steel business of UML through a slump sale on a going concern basis. “It is proposed that the steel business of UML will be acquired subject to transaction closing, for a cash consideration of between Rs 4,300-4,700 crore ,” the release said.
The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition, it added.
Usha Martin's steel business includes the specialised 1 million tonne per annum alloy-based long products manufacturing plant in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants. The transaction and acquisition structure would be determined shortly, Tata Steel said.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonne per annum as on March 31, 2018. Usha Martin is among the largest wire rope manufacturers in the world and a leading speciality steel producer in India.
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