Tata Steel signs accord with Usha Martin to acquire its steel business

Tata Steel Limited (TSL) on Saturday said it has executed definitive agreements for the acquisition of the steel business of debt-ridden Usha Martin through a slump sale on a going concern basis for a cash consideration between Rs 4,300-4,700 crore.

"...it has executed definitive agreements for the acquisition of the steel business of Usha Martin Limited (UML) through a slump sale on a going concern basis," the steelmaker said in a regulatory filing.

The filing further said: "It is proposed that the steel business of UML will be acquired subject to transaction closing, for a cash consideration of between Rs 4,300-4,700 crore (subject to various transaction adjustments)."

The transaction comprises of one mtpa specialized alloy based manufacturing capacity of UML in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants.

The acquisition is expected to be completed in the next 6-9 months.

The steel producer said the closing of the acquisition is subject to fulfillment of various conditions under the agreements.