JSW Steel, Vedanta eyes for Usha Martin’s specialty steel business
JSW Steelband Vedanta have expressed an interest to acquire the specialty steel business of Usha Martin, a sale fetching a maximum of 5,000 crore that will help the Kolkata-based company pare its debt. The valuation of the business is being pegged between Rs 3,500 and Rs 5,000 crore.
Both companies have been given the Memorandum of Understanding (MoU) while they explore various aspects of the acquisition of the 1 MT specialty steel plant in Jamshedpur. A MoU is an information docket prepared by investment bankers and contains all the terms and details of a potential deal.
Vedanta, on the other hand, with its vast iron ore reserves, has been trying to enter the steelmaking business. It is to add value to the resource that is a key raw material for steel. It has successfully bid for the debt-ridden Electrosteel Steels which has currently come on the block under the Insolvency and Bankruptcy Code.