Jindal Steel buys out Oman's Shadeed for $464 million
20 May 2010
Jindal Steel and Power Ltd said today it has acquired Oman-based Shadeed Iron & Steel Co for $464 million, including debt. This is the third-biggest global purchase by an Indian steelmaker.
"We have acquired Shadeed Iron & Steel, which has a 1.5 mt hot briquetted iron (HBI) facility located in Sohar, Oman. The deal is closed," JSPL director Sushil Maroo said in New Delhi. He added that the acquisition is part of the domestic firm's plans to expand its operations overseas.
"It is a gas-based unit. We are also setting up some gas-based steel units. It is a strategic fit for us," he added.
The development comes within days of JSPL announcing that it has aborted the buyout discussions with Al Ghaith Holdings of the United Arab Emirates, which owns Shadeed, on account of many "open issues" (See: JSPL dumps plan to acquire Shadeed Iron & Steel in Oman).
One of the major reasons for JSPL abandoning the plan was the lack of a title ownership of the company due to existing transactions with a British Virgin Islands (BVI) company.
BVI is a tax haven, which helps firms save on various levies.