Tata Steel on Saturday announced that it will acquire the steel business of Usha Martin (UML) for Rs 4,300-4,700 crore. UML, in a stock exchange filing, said the sale of steel business to Tata Steel will help the company in “significant reduction” of its debt. The deal is expected to be completed in six-nine months, it added.

Tata Steel, in a release, said it has executed definitive agreements for acquisition of the steel business of UML through a slump sale on a going concern basis. “It is proposed that the steel business of UML will be acquired subject to transaction closing, for a cash consideration of `4,300-4,700 crore (subject to various transaction adjustments),” the release said.

The closing of the acquisition is subject to fulfilment of various conditions under the agreements. At the closing, Tata Steel or any of its subsidiaries or affiliates may carry out this acquisition, it added.

UML’s steel business comprises the specialised 1 MTPA alloy-based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants, Tata Steel said. The transaction and acquisition structure would be determined shortly, it added.