NatSteel Asia Pte Ltd (NSA), the Singapore-based subsidiary of Tata Steel, said on Thursday it has acquired two new steel-bar rolling plants in Vietnam for $41 million as part of strategy to expand in the Asia-Pacific.
NatSteel struck a conditional agreement with Vietnam Industrial Investments Ltd (VII), an investment holding company, to acquire VII's 100 per cent stake in Structure Steel Engineering Pte Ltd and majority 70 per cent in Vinausteel Ltd.
According to a NatSteel statement posted on its website, the remaining 30 per cent share, in Vinausteel Limited, is held by Vietnam Steel Corporation.
The enterprise value for the acquisition is $41 million, subject to certain closing adjustments on completion, it said, adding, the transaction could be completed by June 2007.
Tata Group is simultaneously pursuing completion of a deal to acquire Anglo-Dutch steelmaker Corus and on Wednesday, the UK-based company's shareholders approved Tata Steel's $12.1 billion takeover
NSA would get hold of two rolling mills -- a 250k tpy bar/wire rod mill operated by SSE Steel Ltd (a wholly-owned subsidiary of SSE(S) and a 180k tpy reinforcing bar mill operated by Vinausteel Ltd located in Haiphong, North Vietnam as part of the agreement, the statement said.
"The Vietnamese steel market has been growing at a healthy rate over the past five years. NSA believes the market for steel products in Vietnam will continue to grow at a strong pace as consumption of steel products in Vietnam on a per capita basis is relatively low," NSA President and CEO Oo Soon Hee said.