ArcelorMittal deal to give us tech edge: Uttam Galva

Uttam Galva Steels has said that its proposed deal with ArcelorMittal would give the company raw material security and technology advantage.

ArcelorMittal,led by NRI billionaire L N Mittal,is snapping up 35 per cent in Uttam Galva through a mixed route of share purchase from existing promoters and open offer.

Uttam Galva Steels Director (Commercial) Ankit Miglani said the deal with ArcelorMittal would give the domestic company access to a huge product mix that it can import and market in the country.

Story continues below this ad

ArcelorMittal has entered into a share purchase pact with Uttam Galva’s promoters — R K Miglani and associates to buy 5.6 per cent stake. Further,ArcelorMittal would be making an open offer for another 29.4 per cent shareholding in Uttam Galva,which starts tomorrow.

The deal would make the world’s largest steel maker a co-promoter in the domestic company.

It will give the company access to huge technology and best practices “which will allow us to enhance our product mix and help us grow the company exponentially,” Miglani said.

He said the deal with ArcelorMittal would help in getting raw material security because “we will have access to source hot-rolled coil. “We are currently importing at least half of our raw material requirement along with other products.”