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.
"A meeting was organised today between the senior management of Tata Sponge and UML followed by a Town Hall meeting with all the officers of UML," the release said.
Addressing the gathering, Sanjay Pattnaik, Managing Director, Tata Sponge, welcomed the UML officers to Tata Sponge family.
He 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 is an established wire rod producer with significant equity in the market place."
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.