Tatas to take over Usha Martin’s steel unit today

Kolkata: Tata Steel is set to take possession of Usha Martin's steel unit at Jamshedpur on Tuesday. The deal was agreed upon in September last year in a transaction worth Rs 4,600 crore. This is the second acquisition by Tata Steel in less than a year, after it successfully managed to take over Bhushan Steel limited now renamed Tata Steel BSL through the NCLT-led process for auction of stressed steel assets in April 2018. Tata Sponge is Tata Steel's chosen vehicle for the acquisition of Usha Martin's one million tonne steel business for which it issued preference shares to Tata Steel.

The proceeds from the deal will be kept in an escrow account of SBI and will be utilised to repay Usha Martin’s debt. All employees pertaining to UML’s steel business will be transferred as part of the divestment. When contacted a Tata Steel spokesperson said the deal is on course and is likely to be completed soon but declined to comment on specifics.