Tata Steel, the country's oldest steel producer, on Saturday announced that it has executed definitive agreements for acquisition of the steel business of Usha Martin Limited through a Slump Sale on a going concern basis. The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition, informed Tata Steel. The promoters of Kolkata-based Usha Martin are selling the steel business to pare the Group's debt. For this long product facility, Tata Steel received stiff competition from Sajjan Jindal-led JSW Steel. With this acquisition, Tata Steel will increase its market share in long products division which is currently just about 2-3 million tonne of its total domestic capacity of 13 million tonne in India.
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