Sesa Goa buys Bellary Steel for Rs 220 cr

Sesa Goa, a Vedanta Group company, has acquired the assets of Bellary Steel and Alloys (BSAL) for Rs 220 crore in a competitive bidding process conducted by IFCI.The all-cash deal will mark the country's largest iron ore producer and exporter's entry into the steel industry.

IFCI had taken possession of Bellary Steel's assets after the company defaulted on its loan. JSW Steel's offer of Rs 210 crore was declared as the winning bid against Sesa Goa's offer of 206 crore. Sesa Goa contested IFCI's decision and moved the Delhi High Court on the grounds that JSW's offer was accepted after the deadline for bidding had expired.

The High Court accepted Sesa Goa's contention in March and allowed it to rebid in an inter se bidding process, which allows only the shortlisted companies to revise their offer.Sesa Goa increased its bid to Rs 220 crore while JSW refrained from renewing its bid.crackcrack