Prince Mathews Thomas Moneycontrol News
Tata Steel has signed agreement to acquire the steel business of Usha Martin in a deal sources put at Rs 4,600 crore.
The Tata company on Saturday said it has signed definitive agreement for the acquisition.
But an executive added that the final valuation will depend on impairment of some assets and risk mitigation.
"The closing of the acquisition is subject to fulfilment of various conditions under the agreements. The parties shall jointly work towards fulfilment of conditions precedent," Tata Steel said in a statement.
The company added that employees of Usha Martin unit will "transfer as part of the acquisition."
Sources said apart from Tata Steel, three more companies — Vedanta, JSW Steel and Kalyani Steels — also put in bids. But Tata's bid was the most aggressive, while others' were in the region of Rs 3,500 crore.
The steel unit makes 1 million ton of alloy a year and its facility in Jamshedpur makes products used in the construction industry. The unit also comes with an iron ore mine and a coal mine that is under development, and power plants.
"The acquisition is part of the overall strategy to build capability in long products and expand product offerings including high-value added products," Tata Steel said.
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