21 February 2019: IMR Metallurgical ResourcesAG, the Swiss commodity trading group that recently bought Tata Steel’s iron ore mines in South Africa, is in advanced talks with bankers to acquire a stressedsteel plantinOdisha, a top official said.
“We are speaking to bankers to acquire a stressed steel plant in the eastern region,” said Sanjay Sinha, director at IMR Metallurgical Resources. “We hope to close the deal soon.”
IMR, which had bid for ferro alloys producer FACOR under theNCLTlast year, is now keen to expand in India by “acquiring small and medium-size firms outside the NCLT that can help us get into steel production”, Sinha told ET.
He did not reveal the identity of the plant the company seeks to buy.
The deal, if it goes through, is likely to set a precedent for foreign firms buying into India’s steel industry.
IMR is involved in global trading, marketing and financing of bulk commodities like, coking coal, iron ore, and iron & steel products.
While the Swiss trader will ensure raw material linkage to the steel plant through its global trading portfolio, it could partner PE firms in the acquisition. It is also in dialogue with professional management services firms to bring one of them on board as operational partner to run these plants.