• search
For Quick Alerts
For Daily Alerts

ESHL agrees to acquire Esmark for $1.1 bn

By Staff

Ahmedabad, May 2: Essar Steel Holdings Limited (ESHL), part of Essar Global Limited, today announced that it has agreed to acquire Esmark Incorporated for an estimated enterprise value of $1.1 billion.

ESHL has agreed to the material terms of a proposed tender offer, for cash purchase price of USD 17 per share of all outstanding shares of Nasdaq listed Esmark. The proposed tender offer was unanimously accepted by the Board of Esmark and is subject to customary approvals including those of the US government and United Steel Workers.

Esmark plans to enter into definitive documentation upon expiration or waiver of the approximate 52-day ''right to bid'' period set forth in the collective bargaining agreement with the United Steel Workers. Esmark is a steel production and distribution company with a capacity of 2.4 MTPA and steel distribution centres across USA.

Mr Shashi Ruia, Chairman, Essar Global said, ''This is another step in realizing our global steel vision of having world class low cost assets, with a global footprint. Having acquired Algoma and Minnesota Steel last year, this acquisition provides us with an excellent platform for the Canadian and North American markets. With the above acquisitions of Esmark and projects under implementation in Trinidad and Tobago, Essar Steel Holdings will have 10 million tonnes of flat steel production in America.''


For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X