Mumbai: Following the footsteps of Tata Steel and Essar, Sajjan Jindal-led JSW Steel today announced acquiring three companies in the US for $900 million to get a foothold in the North American market.
Announcing the decision, company Vice-Chairman and Managing Director Sajjan Jindal said three companies are: Jindal United Steel Corporation, Saw Pipes, USA and Jindal Enterprises LLC.
These three companies together have a production capacity of 1.2 mt of plate mill, 0.55 mt pipe mill and 0.35 mt of double jointing and coating plants. These facilities are strategically located near a deep water port in Texas.
Jindal said the acquisition price worked out to be $900 million and JSW Steel will acquire 90% stake. The remaining 10% will remain with existing shareholders.
This is the third major acquisition abroad in steel sector by Indian companies in recent months after Tata’s $12.9-billion buyout of Anglo-Dutch Corus and Essar’s takeover of Canadian firm Algoma for $1.6 billion.