New Delhi: Ruais-led Essar Group is in the advanced stages of negotiations to acquire the US-based Trinity Coal for about $550-600 million to meet the rising raw material requirement of its steel business, sources said.
“The deal is in the final stages of negotiations and could be concluded shortly, may be in the coming weeks,” a person in the know of the development said.
When contacted, an Essar Group spokesperson declined to comment on the development.
Sources said the company is in the advanced stages of negotiations with the US-based investment firm Denham Capital Management, which controls Trinity Coal.
The development could not be independently confirmed with Denham Capital.
Trinity Coal has an estimated reserves of about 200 million tonnes, including both metallurgical and thermal. Coal, along with iron ore, is a vital input for making steel. It has an annual production capacity of 7 million tonnes.
The Indian conglomerate runs steel mills in Hazira, Gujarat. It also has a plant in Algoma in Canada and is building a steel plant in Minnesota in the US where the company possesses iron ore reserves of about 1.4 billion tonnes.
The acquisition will help the group to meet the coal requirement of its units in North America.