Mesco Group to buy Maithan Ispat for approx Rs 1100 crore

A large deal is close to completion in the steel sector, Mesco Group is in advance stages to acquire Maithan Ispat for Rs 1100 to 1200 crores, a source with knowledge said. The deal involves the buyout of Maithan which operates a 0.4 million tonne steel unit in Odisha which produces long steel products.

Sources indicate that the deal is struck to bail out the debt-laden Maithan Ispat and Mesco with its huge iron ore reserves will be able to make the steel asset's operations viable.

SBI Capital and Ethos Capital Advisors are said to be the bankers to the deal. Sources say that lenders to Maithan Ispat have given their nod for the transaction.

ET Now's e-mails sent to both Maithan Ispat and Mesco Group did not receive any response from the companies.