Tata Sponge Grabs UML

Tata Sponge Iron Limited, a subsidiary of Tata Steel Limited, has acquired the steel business of Usha Martin Limited (UML), a company release said.

A meeting was organised on Tuesday between the senior management of Tata Sponge and UML followed by a Town Hall meeting with all the officers of UML, the release said.
Welcoming the UML officers to Tata Sponge family, Tata Sponge Iron Limited Managing Director Sanjay Pattnaik said, “It is indeed a moment of great pride for all of us in Tata Sponge that today Usha Martin has become an integral part of the Tata Steel Group. India is on the cusp of growth and it is a great opportunity for all players in the steel industry to leverage this growth opportunity.”
Usha Martin's steel business has a rich mix of carbon steel and alloy steel catering to automotive sector and high-end wire rod manufacturers.
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, on Tuesday, 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 acquired business comprises a one million tonnes per annum alloy-based long products making facility in Jamshedpur, an operational iron ore mine, a coal mine under development and captive power plants.

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