Shares of Usha Martin and Tata Sponge Iron rose by 1.89% to 3.29% at 14:02 IST on BSE after Tata Sponge Iron said it completed the acquisition of steel business undertaking of Usha Martin on 9 April 2019.
Tata Sponge Iron was up 3.29%. Usha Martin was up 1.89%.Meanwhile, the S&P BSE Sensex was down 234.94 points, or 0.60% to 38,704.28.
Tata Sponge Iron said it has completed the acquisition of steel business undertaking, including captive power plants, on 9 April 2019, pursuant to a cash consideration (after adjustment for negative working capital and debt like items) payable to Usha Martin of Rs 4,094 crore, which is subject to further hold backs of Rs 640 crore, pending transfer of some of the assets including mines and certain land parcels. The announcement was made after trading hours yesterday, 9 April 2019.
On 22 September 2018, Tata Steel had announced the execution of definitive agreements for acquisition of the steel business of Usha Martin by itself or any of its subsidiaries or affiliates.
Tata Sponge Iron is one of India's largest merchant sponge iron manufacturers. The company is engaged in the production of sponge iron by direct reduction method of iron ore and power generation from waste heat.
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