Signing of Definitive Agreements for acquisition of steel business of Usha Martin Limited by Tata Steel or any of its subsidiaries

24 September 2018

Tata Steel Limited (‘Tata Steel’) hereby announces that it has  executed definitive agreements for acquisition of the steel business of Usha Martin Limited (‘UML’) through a Slump Sale on a going concern basis. The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition.

The steel business undertaking of UML inter-alia comprises of a specialized ~1.0 mtpa alloy based
manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a
coal mine under development and captive power plants. The acquisition is part of the overall strategy
to build capability in long products and expand product offerings including high-value added products.

About Tata Steel
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on March 31, 2018. It is one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries. The Group recorded a consolidated turnover of US $20.41 billion (INR 133,016 crore) in FY18. Tata Steel Group is spread across five continents with an employee base of over 65,000. Tata Steel secured the Steel Industry Leader position in the DJSI 2018 corporate sustainability assessment. The Company has been recognized as the Climate Disclosure Leader in ‘Steel category’ by CDP (2017).
Besides being a member of the World Steel Climate Action Programme, Tata Steel was felicitated with several awards including the Prime Minister’s Trophy for the best performing integrated steel plant for 2014-15 and 2015-16, Best Risk Management by CNBC TV18 (2018) and ‘Corporate Strategy Award’ by Mint (2018). The Company also received the ‘Most Ethical Company’ award from Ethisphere Institute for the sixth time (2018), Steel Sustainability Champions (2017) by the World Steel Association, Dun & Bradstreet Corporate Awards (2017 & 2018), Golden Peacock HR Excellence Award by Institute of Directors (2017) as well as 'Asia's Best Integrated Report' award by the Asia Sustainability Reporting Awards (2017), among several others.

Disclaimer
Statements in this press release

Tata Steel Limited (‘Tata Steel’) hereby announces that it has  executed definitive agreements for acquisition of the steel business of Usha Martin Limited (‘UML’) through a Slump Sale on a going concern basis. The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition.

The steel business undertaking of UML inter-alia comprises of a specialized ~1.0 mtpa alloy based
manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a
coal mine under development and captive power plants. The acquisition is part of the overall strategy
to build capability in long products and expand product offerings including high-value added products.

Kulvin Suri

 

Chief, Corporate Communications, India & SEA
Tata Steel
E-mail: [email protected]

 

 

Source: tatasteel.com