Tata Steel signed an agreement over the weekend to acquire Usha Martin’s steel unit. Tata Steel said in a press statement, “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 Group will acquire the business in an all-cash deal, it informed exchanges over the weekend. The deal is estimated by analysts at around Rs 4,600-4,700 crore (US$632-645 million). The deal, which is subject to regulatory approvals that may take up to nine months, will take Tata Steel’s total capacity to more than 19 million mt annually.
Usha Martin's steel business includes a manufacturing unit in Jamshedpur, a producing iron ore mine, a coal mine under development and captive power plants. The plant has 1 million mt of billet capacity and 0.8 million mt finished steel capacity. It’s located close to Tata Steel’s facilities in Jamshedpur.
This is Tata Steel’s second acquisition this year after it successfully bid for Bhushan Steel Ltd.’s business during insolvency resolution. Tata is also continuing with an active bid for Bhushan Power & Steel Ltd in the insolvency process. With all acquisition and expansions (Odisha 5 million mt, Jamshedpur at 1.5 million mt), Tata Steel could reach 26 million mt in capacity by March 2022