Mumbai: In yet another mega acquirement in the steel segment, JSW Steel has adopted three steel companies in Texas, U.S for $900 million to get a foothold in the North American market.

Sajjan Jindal-controlled JSW Steel Ltd has bought the firms Jindal United Steel Corporation, Saw Pipes USA and Jindal Enterprises LLC in the United States, which are controlled by his elder brother Prithvi Raj Jindal. The three companies have 1.2 million net tonnes of plate mill, 5.5 lakh net tonnes of pipe mill and 3.5 lakh net tonnes of double jointing and coating lines, correspondingly.

The directors of JSW Steel have okayed the attainment of these facilities at a purchase price of $900 million. According to the deal, JSW Steel will get hold of 90 per cent stake at approved enterprise valuation ($810 million), while some of the existing shareholders will retain the remaining equity.

While announcing the contract, JSW Steel MD Sajjan Jindal stated that these three companies are strategically sited near a deep water port in Texas. With this achievement, JSW would entry into North America’s rising and successful oil and gas division that is driving up the plate and pipe demand. The company also gets a chance to detain value addition from blocks to high-end products, i.e., pipes.

“Our Vijayangar plant makes 3.8 million tonnes of slabs, of which 2.8 million goes for hot rolled coil production and the remaining is sold in the open market. This will now go to the U.S. facility to make high-end plates and pipes for the energy market. The products enjoy a healthy demand in the U.S. and fits in with our strategy,” Mr. Sajjan added.