Sajjan Jindal-controlled Indian steel mill JSW Steel Ltd has announced the acquisition of three US steel mills controlled by his elder brother Prithvi Raj Jindal for $810 million.
JSW will have a 90 percent stake in the companies, which are Texas-based Jindal United Steel Corp, Saw Pipes USA, and Jindal Enterprises LLC, while the remaining stakes in the companies will belong to some of the existing shareholders.
Commenting on the acquisition, Mr. Sajjan Jindal said, "The total enterprise valuation is $900 million and we are taking 90 percent. So we will be paying $810 million for the 90 percent stake, and we are investing $130 million towards the working capital of these companies".
JSW Steel also announced that all the acquired companies would run at full capacity in the next twelve to eighteen months.