Mumbai, June 10: In a season of global mergers and acquisitions, steel behemoth Essar Global finally managed to secure the sanction of the Canadian Government to acquire Algoma Steel for 1.85 Canadian dollars (Rs 7,100 crore), after it agreed to keep the Canadian steel company's head office in Sault Ste Marie.
The company had obtained the approval through its wholly-owned subsidiary Essar Steel Holdings in accordance to the company's foreign investment laws and regulations, Essar clarified in an official statement today.
The chairman of Essar Global Mr Shashi Ruia was jubilant and said that, ''The acquisition will be of enormous benefit to both the companies, as well as Sault Ste Marie, the province of Ontario and Canada as a whole.'' It has been mutually decided to retain the services of Mr Denis Turcotte as the CEO of the new entity.
''Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both organisations,'' Mr Turcotte observed and added that it is a win-win situation for all the concerned participants.
The company now has in place all the regulatory approvals essential to go ahead with the acquisition, Essar added.
UNI
The company had obtained the approval through its wholly-owned subsidiary Essar Steel Holdings in accordance to the company's foreign investment laws and regulations, Essar clarified in an official statement today.
The chairman of Essar Global Mr Shashi Ruia was jubilant and said that, ''The acquisition will be of enormous benefit to both the companies, as well as Sault Ste Marie, the province of Ontario and Canada as a whole.'' It has been mutually decided to retain the services of Mr Denis Turcotte as the CEO of the new entity.
''Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both organisations,'' Mr Turcotte observed and added that it is a win-win situation for all the concerned participants.
The company now has in place all the regulatory approvals essential to go ahead with the acquisition, Essar added.
UNI
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