Tata Steel announced that it has executed definitive agreements for acquisition of the steel business of Usha Martin (UML) 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.

The steel business undertaking of UML inter-alia comprises of a specialized ~1.0 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. The acquisition is part of the overall strategy to build capability in long products and expand product offerings including high-value added products.

Shares of the company declined Rs 4.1, or 0.66%, to trade at Rs 620.45. The total volume of shares traded was 155,268 at the BSE (9.58 a.m., Monday).