Ispat Industries, the PK Mittal and VK Mittal group-controlled steel company, is at an advanced stage of acquiring a 2.2 million tonne steel mill in Bulgaria.
The total investment for the acquisition, combined with further investments and environment management costs, will be $300 million (about Rs 1,314 crore).
A source at Ispat Industries said Global Steel Holdings, one of the group's holding companies, had signed an agreement to acquire Finmetals Holding, which controls 71 per cent stake in Bulgaria's largest steel mill, Kremikovtzi.
The acquisition is expected to be completed in a couple of months. The Ispat group will also acquire the two downstream mills of the plant -- Lemind and Lyamkos -- in Serbia.
Ispat group's move to acquire Finmetals Holding follows its abortive attempts to take over Kremikovtzi. After the privatisation of the Kremikovtzi mill, the Bulgarian authorities imposed restrictions on it, including non-transfer of assets.
This prompted the Ispat group to bid for Finmetals Holding. The Ispat group now operates and manages 14 million tonnes of steel making capacity in the Philippines, Libya, Nigeria, India (including Ispat Industries in India), Bulgaria and another 1.4 mtpa of coke making facilities in Bosnia and iron mines in Nigeria with over 260 million tonnes of reserves.
Ispat proposes to take up its plant capacity at Dolvi near Mumbai in India from 3 million tonnes to 5 million tonnes over the next couple of years.
It is also planning to set up a 5 million tonne plant in Orissa, provided the state government gives it an assurance on captive mining leases.