Essar completes Algoma buy, to cut costs
Essar Global plans to reduce costs and widen the product range of Canada's Algoma Steel Inc.
By Agencies |
NEW DELHI: Essar Global on Thursday said it has completed the acquisition of Canadian steel maker Algoma Steel Inc for $1.85 billion Canadian (over Rs 7071.33 crore), that will bring new dimension to its marketing operations in North America.
"We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets," Essar Global Chairman Shashi Ruia said.
Essar Global plans to reduce costs and widen the product range of Canada's Algoma Steel Inc, which it acquired for C$1.85 billion.
"The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications," the company said.
The acquisition was carried through Essar Global's wholly owned subsidiary, Essar Steel Holdings Limited. "Following this, Algoma Steel becomes a part of Essar Global," the company said.
Algoma would now have access to Essar's range of value added products in the automobile, white goods, construction and engineering industries.
"We look forward to working with Algoma's impressive team to take forward our vision of world class, low cost steel assets, with a global footprint. In addition there are plenty of synergies available between our two operations," Ruia added.
"We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets," Essar Global Chairman Shashi Ruia said.
Essar Global plans to reduce costs and widen the product range of Canada's Algoma Steel Inc, which it acquired for C$1.85 billion.
"The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications," the company said.
The acquisition was carried through Essar Global's wholly owned subsidiary, Essar Steel Holdings Limited. "Following this, Algoma Steel becomes a part of Essar Global," the company said.
Algoma would now have access to Essar's range of value added products in the automobile, white goods, construction and engineering industries.
ADVERTISEMENT
"We look forward to working with Algoma's impressive team to take forward our vision of world class, low cost steel assets, with a global footprint. In addition there are plenty of synergies available between our two operations," Ruia added.
Denis Turcotte would continue as Chief Executive Officer of Algoma Steel Inc.
Pursuant to the acquisition the enlarged business would concentrate on further reducing costs of production, widening the product range and developing new applications.
Earlier on June 11, Algoma Steel had received shareholders' approval for its acquisition by Essar Steel Holdings Ltd for 1.85 bn Canadian dollars.
"Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both the organisations," Algoma CEO Denis Turcotte had said.
Earlier this year, the family-controlled group's director, Prashant Ruia, said Essar was planning new plants as well as acquisitions in all its six business areas of telecoms, power, oil and gas, steel, shipping and construction.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
