New Delhi: Essar Global Ltd, which holds 88% stake in Essar Steel Ltd, India’s fourth-largest steel-maker, said in a statement that it is acquiring Minnesota Steel Holdings LLC, which controls over 1.4 billion tonnes of iron-ore resources. The company did not disclose the value of the deal.
Essar said it would invest $1.6 billion (Rs6,720 crore) in a 1.5 million tonne-a-year integrated steel plant being set up by Minnesota. “Our investment in Minnesota Steel is exciting as it gives us a cornerstone in the North American market,” said Shashi Ruia, chairman, Essar Global, in the statement. Minnesota Steel doesn’t have any production facilities but plans to reopen a mine in Minnesota and build a pellet plant, a direct-reduced iron plant and a steel slab mill according to a report last year in the American Metal Market journal. The report said the firm had hired an investment bank to help it find the $1.6 billion it needs for the project.
Earlier this month, Minnesota Steel got the final environmental clearance it needs for the project. This is Essar Global’s second acquisition in less than four days. Earlier this week, the company agreed to buy Canada’s Algoma Steel Inc. for $1.58 billion.