India's Jindal Steel to buy Shadeed Iron

Jindal Steel and Power (JSPL) has agreed to acquire Oman-based Shadeed Iron and Steel for $464 million (Dh1.7 billion), the third biggest overseas acquisition by an Indian steel maker.

The move is a significant international strategic acquisition for JSPL, which has recently acquired several iron ore mines in Africa and Bolivia. The facility will cater to the strong demand for steel in the Middle East and North Africa (Mena) region, which has projected supply shortfall of 15 million tonnes.

Emirates Business earlier reported that JSPL had discontinued talks with UAE-based Al Ghaith Holdings for acquiring Shadeed both parties were not able to reach agreements due to lack of clarity on land titles and incremental liabilities. However, the company was able to resolve several of the outstanding issues with the Oman Government.

The acquisition will be made by Mauritius-based wholly owned subsidiary of the firm, Jindal Steel and Power (Mauritius) Ltd, said JSPL in a statement to the Bombay Stock Exchange. A definitive share purchase agreement and other documents have been signed for consideration of $464m including the assumption of liabilities up to $79m.