Essar Steel acquires US-based Esmark

Essar Steel

Essar Steel Holdings has informed that the company has acquired US steel producer and distributor Esmark for an enterprise value of US$ 1.1 billion (Rs 4,456.10 crore).

Essar’s takeover of Esmark, NASDAQ-listed company with capacity of 2.4m tonnes a year, marks the Mumbai-based group’s third acquisition of a US steel company and seals Essar’s place as one of India’s top three private sector steelmakers. Essar will pay USD 17 for every Esmark share, a premium over the stock’s ruling market price of $16.79 a share.

With the acquisition, the Essar group will have approximately 7 million tonnes of steel-making capacity in the US and Canada put together. The Essar group, in the past one year, has been systematically adding capacities in the developed North American markets.

Essar Steel is a part of the $10 billion Essar Global, an international conglomerate operating in six business areas — steel, oil and gas, power, communications, shipping, and logistics & construction. It has offices worldwide and employs approximately 38,000 people, including over 3500 persons in the US.

Business News: 
Regions: