India’s Sesa Goa acquires Bellary Steel and Alloys’ assets

Indian iron ore producer Sesa Goa Ltd has announced that it has acquired the assets of the planned steel plant unit of Bellary Steel and Alloys Limited (BSAL) for an all-cash consideration of INR 2.2 billion (about $49 million).
 
"We have been looking at setting up value addition facilities, as desired by the state government (Karnataka), and this acquisition provides us with an excellent opportunity to leapfrog ahead in that direction," Sesa Goa's managing director Mr. Prasun K. Mukherjee said.
 
BSAL had been in the process of establishing a 0.5 million mt per year steel plant project at Bellary on freehold land of about 700 acres.
 
The assets of the acquired company have been transferred on a ‘as is where is' basis to Sesa Goa effective today, the company's statement said, adding that it is conducting a detailed assessment to determine the best way forward for commissioning the steel plant at the earliest.
 
BSAL is located in the iron ore-rich belt in the state of Karnataka, and is in close proximity to national highways, railways and water sources. "This asset provides the company with an exceptional opportunity to expeditiously set up a value addition facility, with about 700 acres of freehold land," Sesa Goa said.