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Mumbai: JSW Steel has completed the acquisition of majority shares in the US-based steel plant Acero Junction Holdings for $80.85 million (approx Rs 550 crore) the company said in a notification to the stock exchange on Thursday.
The company has acquired 83% of the shares of the the steel company in Ohio and the remaining 17% is in the process of transfer to the company on making the balance payments, JSW Steel said.
After the closing adjustments take place, the enterprise value of the transaction will be $182.41 million (Rs 1,240 crore).
JSW Steel will also take on Acero's debt of $101.56 million (close to Rs 690 crore).
The acquisition will give the company a manufacturing presence.
This has been the company's second major move in the US market; with another one being the investment of $500 million at its existing plates and pipe mills facility in Baytown, Texas to fully backward integrate it as well as increase its capacity utilisation to its full capacity of 1 MT.
A month ago, the company also bought Italian steelmaker Aferpi for Rs 440 crore that will give the company a foothold in the European market after it earlier lost Ilva to ArcelorMittal.
Back home, apart from Monnet ispat and Energy JSW Steel's plans to acquire distressed assets brought to sale under the newly constituted bankruptcy law have not met with much success.
Bhushan Steel has been taken over by Tata Steel already while in Bhushan Power and Steel is still battling it out in the courts for acquisition between Tata Steel and Liberty House.
Monnet Ispat and Energy is awaiting final nod from the National Company law Tribunal.
JSW Steel is also in the fray to acquire Kolkata-based Usha Martin's specialty steel business with others like Tata Steel, Liberty House and Kalyani Steel.
