India's Essar group has announced it will acquire US-based Minnesota Steel for an undisclosed amount in its second take-over of a North American firm this week.
Minnesota Steel plans to set up a steel plant with an annual capacity of 2.5 million tonnes when completed at an estimated cost of 1.65 billion dollars, the companies said in a joint statement on April 18.
Construction is expected to begin in the third quarter. "Our investment in Minnesota Steel is exciting as it gives us a cornerstone in the North American market. From this we will further expand our global steel business," Essar Global Chairman Shashi Ruia said.
Essar said on April 16 that it would buy Canadian steelmaker Algoma for 1.58 billion dollars to tap business opportunities in North America. Essar Global has interests in steel, oil, communications, shipping and construction. Minnesota Steel controls iron ore resources of over 1.4 billion tonnes. Earlier this year India's Tata Steel bought Anglo-Dutch firm Corus for 13.7 billion dollars, a move that will make it the world's fifth-largest steelmaker.