Current Affairs - Business - Discussion

Tata Steel has decided to acquire Usha Martin company, one-million-tonne steel business, for Rs.4,700 crore. This acquisition would lift the company's volume of long products by 24% and expand its product mix. Usha Martin's alloy long steel products cater to higher value-added automotive and engineering segments. The existing capacity of Tata Steel is 29.5 million tonnes. Usha Martin assets are located in Jamshedpur, near Tata Steel's unit. Hence, the acquisition will have operational and logistics synergies. The HSBC Securities expects that the acquisition is marginally positive as it will increase Tata Steel's long product capacity to 4 million tonnes per annum. This acquisition has put Tata Steel as the preferred stock in the market.