A unit of India’s JSW Group said it will buy a 49 percent stake in iron ore pellets manufacturer Brahmani River Pellets Ltd for an undisclosed amount, after Tata Steel Ltd, which was a front-runner to acquire the company, dropped out.

The deal will give the Sajjan Jindal-controled steel giant access to a 4 million ton per annum (mtpa) pellet plant and a 4.7 mtpa iron ore beneficiation plant in the eastern state of Odisha, and a 230 kilometers long pipeline connecting both, where the group has been trying to get a foothold for a long time.

JSW Techno Projects Management Ltd said after market hours on Friday that it will buy the stake from Aryan Mining and Trading Corp Pvt Ltd.

Tata Steel terminated an agreement with Aryan Mining in October to acquire the eastern India-based Brahmani in the absence of regulatory approvals.

 

Source: reuters.com

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