IBEF: February 19, 2020
Billionaire Sanjeev Gupta-led GFG Alliance announced the acquisition of Adhunik Metaliks and its arm Zion Steel for about Rs 425 crore (US$ 60.81 million), marking its entry into the Indian steel market.
The London-based GFG Alliance was planning to enter the Indian market for long and has a business portfolio in energy, mining, metals, engineering and financial services segment.
L N Mittal’s ArcelorMittal completed the acquisition of Essar Steel in December 2019 to enter the Indian market.
The strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion) by GFG Alliance was completed in a Rs 4.25 billion (US$ 60.81 million) cash deal. This transaction marks the Alliance’s entry into India, the London-based group said in a statement.
According to the company, the immediate focus, will be on reviving and restoring the facilities and operations of the two companies, and once stabilised the business will begin its integration into the Liberty Steel Group, a part of GFG Alliance.
India-born British businessman and Executive Chairman of GFG Alliance Mr Sanjeev Gupta said, “Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India. India is one of the fastest growing and most vibrant steel markets in the world.”
Adhunik has an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant includes both blast furnace and Electric Arc Furnace steel making capability with 0.5 million tonne per annum capacity, and a 34 MW captive power plant.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.