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Tata Steel has announced the acquisition of the steel business of Usha Martin Ltd. for Rs. 4,300 to 4,700 crores. Usha Martin said in a filing to the BSE that the sale of steel business to Tata Steel will help the company in “significant reduction” of its debt. The deal is expected to be completed in 6-9 months, it added.
Tata Steel said in a press release that it has executed definitive agreements for the acquisition of Usha Martin steel business through a slump sale on a going concern basis.
The release said, “It is proposed that the steel business of Usha Martin Ltd will be acquired subject to transaction closing, for a cash consideration of between Rs 4,300 and Rs 4,700 crore (subject to various transaction adjustments).”
Tata Steel annual capacity is accounted at 27.5 MTPA as of March 31, 2018, whereas Usha Martin steel business comprises of specialised 1 million-tonnes-per-annum (MTPA) alloy based manufacturing capacity in the long products segment.
Usha Martin is also among the largest wire rope manufacturers in the world and a leading speciality steel producer in India. Usha Martin, Jamshedpur, steel business also comprises of a producing iron-ore mine, a coal mine under development and captive power plants.
