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British-Indian steel tycoon seals financing pact to acquire Europe's largest aluminium smelter

Press Trust of India  |  New Delhi/London 

UK-based Liberty Steel, which is part of Indian-origin tycoon Sanjeev Gupta's global GFG Alliance, on Friday announced that it has entered into a committed financing agreement with a syndicate of major international banks for buying Dunkerque, the Europe's largest smelter, from

Without divulging the names of the banks, the company said the term loan secured on standard financial terms provides five-year committed funds.

The pact now clears the way for the deal, on the 560-worker site in France, to be formally completed before the end of November following the completion of closing mechanics.

"I am very pleased to have completed this committed facility with a broad range of leading banks allowing Liberty to complete this landmark transaction," Sanjeev Gupta, of the

"It allows us to press ahead with our plans to develop Dunkerque, to expand production and create added-value downstream operations. This agreement underlines the support of the community for GFG's vision for economic and environmental sustainability," he said.

Friday's announcement follows extensive talks over recent months aimed at securing approvals, long-term power price contracts and robust measures to protect the in the face of market turbulence arising in part from the US sanctions against Rusal and the closure of a major alumina refinery in Brazil, the said.

After completion, the company said, it intends to make substantial investments in the flagship plant, making it the cornerstone of a major business, producing metals and components for the automotive and other growing industries in

As part of this, Liberty recently acquired the aluminium wheels factory at Chateauroux in

The London-headquartered is a global group of energy, mining, metals, engineering, logistics, infrastructure, and education businesses. has a presence in around 30 countries worldwide.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 20:35 IST