Essar group to acquire US steel maker for $1 bn

The Ruia-controlled Essar Steel Holdings Thursday disclosed it is acquiring the US-based steel producer Esmark Inc for an estimated $1 billion.

"The proposed tender offer was unanimously accepted by the board of Esmark Inc and is subject to customary approvals, including those of the US government and united steel workers," the group said in a statement.

Esmark is a steel production and distribution company with an annual capacity of 2.4 million tonnes and distribution centres across the US. A definitive pact is to be entered into in 52 days, the group said.

"This is another step in realizing our global steel vision of having world class, low-cost assets, with a global footprint," said Shashi Ruia, chairman of Essar Global, the holding arm of Essar Steel Holdings.

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