Tata Steel, on Saturday, announced the acquisition of Kolkata-based Usha Martin, a steel business without disclosing the final purchase value.
The shares of both the companies witnessed completely opposite trend in the opening trade today. Usha Martin was trading 52 weeks high by 8% at ₹36.40. At 10.00am, the stocks were quoted at ₹32.25 INR or +0.95.
In contrast, the stocks of Tata Steel went 0.93% post the agreement. At 10.06 am today, it dreaded by INR −7.40 (1.18%).
Recent Media report suggests that the deal was sealed between ₹43,000 crore to ₹47,000.
#BreakingNews We've signed definitive agreement for #acquisition of #steel business of Usha Martin Limited. The acquisition is part of the overall strategy to build capability in long products & expand product offerings including high-value added products. https://t.co/BLtqferWNt
— Tata Steel (@TataSteelLtd) September 22, 2018
As quoted by Moneycontrol, Tata steel stated, “The closing of the acquisition is subject to fulfillment of various conditions under the agreements. The parties shall jointly work towards fulfillment of conditions precedent.”
Usha Martin’s major asset include a manufacturing unit in Jamshedpur, a coal mine (under development), a producing iron-ore mine.