Amtek Auto in talks to buy OCL Iron & Steel-paper

MUMBAI, April 23 (Reuters) - Auto-parts maker Amtek Auto Ltd
is in talks to buy OCL Iron and Steel Ltd (OISL)
in a deal that could value the company at around 3.5
billion rupees, a newspaper reported on Thursday.
Amtek is looking to acquire a steel company with captive iron
ore coal mines as part of its strategy of backward integration,
Business Standard newspaper quoted a senior Amtek official it
didn't name as saying.
OCL Iron and Steel has captive iron ore mines of around 5
million tonnes and coal mines of around 20 million tonnes. It
also has a 20,000 tonne a year sponge iron unit and is settin up
a blast furnace, the paper said.
Amtek Auto officials were not immediately available for
comment, when contacted by Reuters.
OISL was originally a wholly owned subsidiary of OCL
and was spun off into a separate company in 2006.
The deal could be closed as early as next month through a
special purpose vehicle that will be funded by the promoters and
partially funded by Amtek Auto, the paper said, quoting unnamed
sources.
(Reporting by Aniruddha Basu & Jasudha Kirpalani; Editing by
Ramya Venugopal)
((aniruddha.basu@thomsonreuters.com; +91 22 6636 9286; Reuters
Messaging: aniruddha.basu.reuters.com@reuters.net))
(If you have a query or comment on this story, send an email to
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Keywords: AMTEK ACQUISITION/

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