Essar Global acquires Algoma for $1.85 bn

New Delhi, June 21: Essar Global today said it has completed the buyout of Canada-based Algoma steel for an amount of 1.85 billion dollars through its wholly owned subsidiary Essar Steel Holdings Ltd.

The company will retain Denis Turcotte as the Chief Executive Officer of Algoma, a statement said.

Essar Global Chairman Shashi Ruia said, ''Algoma is the keystone of our expansion into the North American markets. We look forward to working with Algoma's team to take forward our vision of world class, low cost steel assets, with a global footprint. In addition, there are plenty of synergies available between our two operations.'' The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications, he added.

''As part of the Essar group, we will be able to exploit new growth opportunities and implement the best technologies and engineering practices from across both organisations. Our customers, employees and community can look forward to investment that will reposition the company as a North American leader in steel,'' Mr Turcotte said.

Algoma brings a whole new dimension to Essar steel's marketing operation in North America and Algoma will now have access to Essar's range of value added products in the automobile, white goods, construction and engineering industries.

Essar Global is an international conglomerate operating in six business areas, steel, energy, power, communications, shipping and logistics and construction.

UNI