Essar Global Completes Algoma Acquisition

Essar Global has completed the acquisition of Algoma Steel Inc. through its wholly owned subsidiary, Essar Steel Holdings Limited.

Essar has acquired the company at a valuation of Canadian $1.85 billion. Following this, Algoma Steel becomes a part of Essar Global. Mr. Denis Turcotte will continue as Chief Executive Officer of Algoma Steel Inc.

Mr Shashi Ruia, Chairman, Essar Global said, "We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets. We look forward to working with Algoma"s impressive 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."

"As part of the Essar group, we will be able to exploit new growth opportunities and implement the best technological and engineering practices from across both organizations. This is a win-win situation for all Algoma stakeholders. Our customers, employees, and community can look forward to investment that will reposition the Company as a North American leader in steel", added Denis Turcotte, CEO of Algoma.

Algoma brings a whole new dimension to Essar Steel"s marketing operations 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. The enlarged business will concentrate on further reducing costs of production, widening the product range and developing new applications.

Source : Equity Bulls

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