Essar Global on Thursday said it has completed the acquisition of Canadian steel maker Algoma Steel Inc for 1.85 billion Canadian dollar (over Rs 7071.33 crore), that will bring new dimension to its marketing operations in North America.
"We are delighted to welcome Algoma to the Essar family. Algoma is the keystone of our expansion into the North American markets," Essar Global Chairman Shashi Ruia said.
The acquisition was carried through Essar Global's wholly owned subsidiary, Essar Steel Holdings Limited. "Following this, Algoma Steel becomes a part of Essar Global," the company said.
Algoma would now have access to Essar's range of value added products in the automobile, white goods, construction and engineering industries.
"We look forward to working with Algoma's impressive team to take forward our vision of world class, low cost steel assets, with a global footprint. In addition there are plenty of synergies available between our two operations," Ruia added.
Denis Turcotte would continue as Chief Executive Officer of Algoma Steel Inc.
Pursuant to the acquisition the enlarged business would concentrate on further reducing costs of production, widening the product range and developing new applications.
Earlier on June 11, Algoma Steel had received shareholders' approval for its acquisition by Essar Steel Holdings Ltd for 1.85 bn Canadian dollars.
"Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both the organisations," Algoma CEO Denis Turcotte had said.