Billionaire Sanjeev Gupta-led GFG Alliance on Tuesday announced the acquisition of Adhunik Metaliks and its arm Zion Steel for about Rs 425 crore, marking its entry into the Indian steel market.
London-based GFG Alliance is a global group of energy, mining, metals, engineering and financial services businesses, which was eyeing Indian market for long and has become the second global company to enter the local steel market in past two months.
In December 2019, L N Mittal's ArcelorMittal completed the acquisition of Essar Steel to enter the Indian market.
GFG Alliance on Tuesday completed the strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion) in a Rs 4.25 billion or USD 60 million cash deal. The transaction marks the Alliance's entry into India, one of the world's fastest growing steel markets, the London-based group said in a statement.
The immediate focus, it said, will be on reviving and restoring the facilities and operations of the two companies, and once stabilised the business will begin its integration into the Liberty Steel Group, a part of GFG Alliance.
Commenting on the acquisition, India-born British businessman and Executive Chairman of GFG Alliance Sanjeev Gupta said: "Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India. India is one of the fastest growing and most vibrant steel markets in the world."