Chennai: Tata Sponge Iron Limited, a subsidiary of Tata Steel Limited, has acquired the steel business of Usha Martin Limited (UML), a company release said Tuesday. Tata Steel signed a definitive agreement with UML to acquire their steel business in September 2018.
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, the release said.
The acquisition involves UMLs 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.