Jamshedpur: Tata Sponge Iron Limited, a subsidiary of Tata Steel Limited today completed the acquisition of the steel business of specialty steel and wire rope manufacturer Usha Martin Limited (UML). The acquisition involves UML’s 1.0 MnTPA specialty steel plant in Jamshedpur that makes alloy based long products, a functional iron ore mine, a coal mine under development and captive power plants.
Tata Steel had signed a definitive agreement for the acquisition in September last year.
“The Company has completed the acquisition of steel business undertaking including captive power plants, today, pursuant to a cash consideration (after adjustment for negative working capital and debt like items) payable to UML of Rs. 4,094 crore, which is subject to further hold backs of Rs.640 crore, pending transfer of some of the assets including mines and certain land parcels” Tata Sponge said.
“It is indeed a moment of great pride for all of us in Tata Sponge that today Usha Martin has become an integral part of the Tata Steel Group. India is on the cusp of growth and it is a great opportunity for all players in the steel industry to leverage this growth opportunity. Usha Martin is an established wire rod producer with significant equity in the market place” Mr. Sanjay Pattnaik, Managing Director, Tata Sponge.