Mahindra Ugine Steel Company has received its board’s approval to transfer its steel division (including rings/bearing races), by way of a slump sale on a going concern basis, to a wholly owned subsidiary of the company (JV company).
The company has entered into agreement with Sanyo Special Steel Co (Sanyo) and Mitsui & Co. (Mitsui) under which Sanyo and Mitsui will be investing in the JV company. Post approval of the shareholders and receipt of other requisite approvals, Mahindra Ugine, Sanyo and Mitsui will hold 51%, 29% and 20% equity stake respectively in the JV company.
Mahindra Ugine Steel Company is engaged in the manufacturing of alloy & special steel through Electric Arc Furnace (EAF) route & caters to the automotive, engineering, bearing & other industries. The company manufactures a wide array of products including skin components, underbody components, critical assemblies, chassis components and car body sheet metal (Body in White) parts with a total capacity of 30,000 metric tons.
