Tata Sponge Iron acquires steel business of Usha Martin for Rs 4,094 crore

The acquisition involves Usha Martin's 1.0 MnTPA specialty steel plant in Jamshedpur that makes alloy based long products, a functional iron ore mine, a coal mine under development and captive power plants.

By PTI  
Tuesday, April 9, 2019

Tata Sponge Iron Limited, a subsidiary of Tata Steel Limited, has acquired the steel business of Usha Martin Limited (UML), a company release said Tuesday.

"A meeting was organised today between the senior management of Tata Sponge and UML followed by a Town Hall meeting with all the officers of UML," the release said.

Addressing the gathering, Sanjay Pattnaik, Managing Director, Tata Sponge, welcomed the UML officers to Tata Sponge family.

He said: "It is indeed a moment of great pride for all of us in Tata Sponge that today Usha Martin has become an integral part of the Tata Steel Group. India is on the cusp of growth and it is a great opportunity for all players in the steel industry to leverage this growth opportunity. Usha Martin is an established wire rod producer with significant equity in the market place."

Tata Steel signed a definitive agreement with UML to acquire their steel business in September 2018.

The Company has completed the acquisition of steel business undertaking including captive power plants, today, pursuant to a cash consideration (after adjustment for negative working capital and debt like items) payable to UML of Rs 4,094 crore, which is subject to further hold backs of Rs 640 crore, pending transfer of some of the assets including mines and certain land parcels, the release said.

The acquisition involves UMLs 1.0 MnTPA specialty steel plant in Jamshedpur that makes alloy based long products, a functional iron ore mine, a coal mine under development and captive power plants.

Also Read: GoAir loses 15 senior executives in past nine months

Related Stories

Essar Steel reports Rs 4,229 crore EBITDA during insolvency period
Essar Steel reports Rs 4,229 crore EBITDA during insolvency period
Home buyers to pay 12% GST on dues if completion certificate issued by March 31
Home buyers to pay 12% GST on dues if completion certificate issued by March 31
Govt to set up panel under DGFT to look at steel availability for engineering exporters
Govt to set up panel under DGFT to look at steel availability for engineering exporters

Latest Stories

Amul hikes milk prices by Rs 2 per litre from 21 May
Amul hikes milk prices by Rs 2 per litre from 21 May
ArcelorMittal to pay Rs 42,000 crore for Essar Steel takeover: Co tells NCLAT
ArcelorMittal to pay Rs 42,000 crore for Essar Steel takeover: Co tells NCLAT
Starbucks opens 'silent cafe' in China, employs hearing-impaired staff
Starbucks opens 'silent cafe' in China, employs hearing-impaired staff
SPONSORED