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Rediff News  All News  » Business » Jindal Steel buys Omani company for $464 million

Jindal Steel buys Omani company for $464 million

May 20, 2010 09:58 IST

Jindal Steel and Power on Thrusday said it has acquired Oman-based Shadeed Iron & Steel for $464 million.

"We have acquired Shadeed Iron & Steel (Shadeed) which has 1.5 MT Hot Briquetted Iron (HBI) facility located in Sohar, Oman. The deal is closed," JSPL Director Sushil Maroo told PTI.

Maroo said the acquisition is part of the domestic firm's plans to expand its operations overseas.

"It is a gas-based unit. We are also setting up some gas-based steel units. It is a strategic fit for us," he added.

The development comes within days of the Indian firm announcing that it has aborted the buyout discussions with Al Ghaith Holdings of UAE which owns Shadeed on account of many "open issues."

The domestic firm said among other reasons there was a title ownership issue due to existing transactions with a British Virgin Islands (BVI) company. BVI is a tax haven, which helps firms save on various levies.

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