India's Essar to acquire US steelmaker

0 Comments | AFP, April, 2007

NEW DELHI, India (AFP) — India's Essar group has announced it will acquire US-based Minnesota Steel for an undisclosed amount in its second takeover of a North American firm this week.

Minnesota Steel plans to set up a steel plant with an annual capactiy of 2.5 million tonnes when completed at an estimated cost of 1.65 billion dollars, the companies said in a joint statement Wednesday.

Construction is expected to begin in the third quarter.

"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," Essar Global Chairman Shashi Ruia said.

Essar said on Monday that it would buy Canadian steelmaker Algoma for 1.58 billion dollars to tap business...