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CCI approves Tata Sponge Iron's acquisition of Usha Martin's steel business

Deals beyond a certain threshold require approval from the Competition Commission of India

Press Trust of India 

tata steel
A general view shows the Tata Steel works in Scunthorpe, northern England | Photo: Reuters

The has cleared Iron's acquisition of steel business of for Rs 43-47 billion.

In October, Tata Steel had said its subsidiary, Iron Ltd (TSIL), will acquire Ltd (UML) between Rs 43-47 billion, subject to various transaction adjustments.

With the acquisition, TSIL will enter the steel business.

The CCI in a tweet on Tuesday said it "approves acquisition of steel division of Usha Martin Limited by Limited".

Deals beyond a certain threshold require approval from the of India (CCI).

Earlier, UML had said the sale of steel business to Tata Steel will help the company in "significant reduction" of its debt.

UML's steel business comprises the specialised 1 mtpa alloy based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants.

is among the top global steel with an annual crude steel capacity of 27.5 million tonnes per annum (mtpa) as on March 31, 2018.

Usha Martin is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India.

First Published: Tue, December 11 2018. 18:55 IST