Odisha-based Maithan acquired by Mesco Steel for Rs 1,160 cr

New Delhi: Mesco Steel today said it has acquired Odisha-based Maithan Ispat for Rs 1,160 crore in a mix of debt and equity deal.

The deal will help bail out Maithan Ispat, which is under debt burden of Rs 795 crore, and enable Mesco to utilise large iron ore mines of the Odisha-based company.

"It is a win-win scenario for Mesco. The deal will take Mesco Steel's capacity to 2.2 million tonne per annum," Mesco Steel CMD Rita Singh told PTI.

The deal is worth Rs 1,160 crore, she said.

As per the deal, Delhi-based Mesco will take over Maithan Ispat's 1 million tonne steel plant at Kalinganagar.

Mesco said it is in talks with a consortium of banks led by State Bank of India for repaying the debt of Maithan.

Maithan Ispat also has a 60-tonne steel melting shop.

Mesco said that it "is now going to add another 70 tonnes of electric arc furnace."

"This will give distinctive advantage in high beam and section mill, which is also expandable to one million tonnes," it said.

Mesco Steel operates two blast furnaces at its plant in Kalinganagar.

Recently, it signed an agreement with world's fourth largest steel firm Posco for shifting the latter's patented Finex plant to India.

Mesco also operates an iron ore mine in Barbil region and has another iron ore mining lease at Malangtoli in Odisha.