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Rediff.com  » Business » JSW Steel in the fray to acquire Tata Steel UK

JSW Steel in the fray to acquire Tata Steel UK

May 10, 2016 14:42 IST

Steel factory

 

Sajjan Jindal-led JSW Steel is in the fray to acquire Tata Steel's loss-making business in the UK.

On Monday, Tata Steel had said it has taken forward seven EoIs submitted for its UK business to the next stage of the sale process.

JSW Steel has also submitted an EoI for Tata Steel UK and is now waiting for a go-ahead from Tatas side, people in know of the development said.

JSW Steel was not immediately available for comments.

Tata Steel UK's assets include Port Talbot plant in south Wales, UK's largest with around 4,000 workers, as well as sites at Newport, where more than 1,300 people are employed, and Rotherham, which employs 1,200.

The flagship firm of the over $11-billion JSW Group, JSW Steel with steel plants in Karnataka, Tamil Nadu and Maharashtra have a combined installed capacity of 18 million tonnes per annum.

Earlier this month, Jindal's JSW Energy had said it will acquire a 1,000 mw plant from his younger brother Naveen-led heavily indebted Jindal Steel and Power Ltd for Rs 6,500 crore or Rs 65 billion.

JSW will pay at least Rs 4,000 crore Rs 40 billlion, excluding net current assets and an additional Rs 2,500 crore or Rs 25 billion if JSPL plant

in Raigarh, Chhattisgarh secures a long term power purchase agreement, the firms said in statements.

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