Essar to acquire US steel firm
Essar Global signed an agreement to acquire US-based Minnesota Steel LLC for an undisclosed amount.
By PTI |
NEW DELHI: Days after buying Canadian steel firm Algoma for 1.58 billion dollars, Essar Global today signed an agreement to acquire US-based Minnesota Steel LLC for an undisclosed amount to secure iron ore supplies.
Ruias-controlled Essar Global Ltd through its subsidiary Essat Steel Holdings inked the pact with Minnesota Steel today, the two companies said in a joint statement.
Minnesota has iron ore reserves of more than 1.4 billion tonnes and plans to invest 1.65 billion dollars for setting up an integrated steel plant with a capacity of 2.5 million tonnes per annum.
The steel plant would be built in stages, with the first phase expected to be commissioned in 2009 and produce up to 1.5 million tonnes of thick steel slab per year.
Commenting on the deal, Essar Global chairman Shashi Ruia said: "Our investment in Minnesota Steel is exciting as it gives us a cornerstone in north American market. From this, we will further expand our global steel business."
The US acquisition comes barely two days after the company announced buying Canadian firm Algoma Steel for 1.58 billion dollars.
Essar's takeover follows compatriot Tata Steel's buyout of Anglo-Dutch firm Corus Group Plc for 12.9 billion dollars.
Ruias-controlled Essar Global Ltd through its subsidiary Essat Steel Holdings inked the pact with Minnesota Steel today, the two companies said in a joint statement.
Minnesota has iron ore reserves of more than 1.4 billion tonnes and plans to invest 1.65 billion dollars for setting up an integrated steel plant with a capacity of 2.5 million tonnes per annum.
The steel plant would be built in stages, with the first phase expected to be commissioned in 2009 and produce up to 1.5 million tonnes of thick steel slab per year.
Commenting on the deal, Essar Global chairman Shashi Ruia said: "Our investment in Minnesota Steel is exciting as it gives us a cornerstone in north American market. From this, we will further expand our global steel business."
The US acquisition comes barely two days after the company announced buying Canadian firm Algoma Steel for 1.58 billion dollars.
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Essar's takeover follows compatriot Tata Steel's buyout of Anglo-Dutch firm Corus Group Plc for 12.9 billion dollars.
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