Essar Global acquiring Minnesota Steel

Essar Global acquiring Minnesota Steel

Essar Global has announced their decision to acquire US-based privately held company Minnesota Steel.

Minnesota Steel has iron ore reserves of 1.4 billion tone and the deal has been signed for an undisclosed amount. Market sources claim that Essar would be paying around Rs 350 crore for the acquisition.

Minnesota Steel is in the process of establishing an integrated steel plant with an annual capacity of 2.5 million tone and it would require an investment of around $1.65 billion. The production at this plant is expected to begin in 2009 and it would be the first of its kind plant in North America.

Interestingly, Essar Global just recently acquired another Canadian steel major Algoma. Essar Global Chairman Shashi Ruia spoke on this new deal: “Our investment in Minnesota Steel is exciting as it gives us a cornerstone in the North American market. From this, we will further expand our global steel business. By developing this significant iron ore resource, Minnesota Steel has the opportunity to be one of the low-cost producers of steel in the world.”