Essar Steel subsidiary buys UKs Servosteel

The Ruias-owned Essar Steel on Monday announced that its subsidiary Essar Steel International BV has acquired UK-based steel processor Servosteel (Oakside Solutions Ltd),marking its first-ever buyout in that country. Essar Steel International BV,a subsidiary of Essar Steel Holdings,announces that it has acquired Servosteel (Oakside Solutions),the largest independent steel processor in the UK, the company said in a statement here. The firm,however,did not disclose the deal amount.

Servosteel is a Dudley-based steel service centre in West Midlands and offers service for SCS (smooth clean surface technology),pickling,slitting and decoiling and various individual custom tailored services. The acquisition is in line with Essar Steels distribution strategy, the company said in a statement. Analysts are surprised by the companys move of making an acquisition in the UK in the current scenario. However,a Essar Steel spokes person said,We are entering the UK market by acquiring this service centre where we would get access to maximum customers.