20 May 2010
(MENAFN) India’s Jindal Steel & Power said that it has agreed to buy Oman’s Shadeed Iron & Steel for $464 million expanding its reach in the Middle East, Reuters reported.
The deal which includes liabilities of $79 million, will be financed by $400 million of debt, which is already tied up, and equity of $64 million, Jindal Steel’s director said.
Shadeed is investing $500 million to install a gas-based hot briquetted iron plant with annual capacity of 1.5 million tons at Sohar in Oman, which is likely to be operational in a year with revenue expected to kick in by July-Sept 2011, the company said.
Jindal Steel’s plants in India may supply pellets or the company may set up a pellets manufacturing facility in Oman to support the Shadeed plant, it said.
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