Mesco Steel buys Maithan Ispat for Rs 1160 crore

BHUBANESHWAR: Mesco Steel has bought out debt-laden steel maker Maithan Ispat for Rs 1,160 crore. This follows an agreement Rita Singh-promoted Mesco signed with South Korean steelmaker Posco last week.

The acquisition includes Kalinganagar-based Maithan Ispat's debt, which Mesco will repay over two years.

This provides Mesco an opportunity to use its pig iron in Maithan's billets and beam facilities. "We will be investing in fresh equity and debt to add a 0.7 million tonne electric arc furnace, for which Maithan already has environment clearance.

This acquisition provides us with a wonderful synergy, whereby we raise our own capacity to 2.2mt," Singh told ET. The company is betting on the Narendra Modi government's infrastructure push, and believes it will find a ready market for beams and section beams produced at Maithan.