Indian steel producer JSW Steel said it has bought the three U.S. companies of Jindal United Steel, Saw Pipes USA and Jindal Enterprises for a combined value of $900 million. JSW Steel plans to merge the three companies into one, the company's director of finance, Seshagiri Rao, tells reporters at a press conference in Mumbai.

JSW Steel will own 90% of the merged entity with a stake valued at $810 million, while Jindal Saw will own the remaining 10%. Before the buy, Jindal Saw owned 19.47% of Jindal United Steel, 49% of Saw Pipes USA and 100% of Jindal Enterprises. JSW Steel will pay an additional $130 million in inventory costs, including plant machinery. Rao tells reporters that "the acquisition of these companies will give us an entry point into the growing oil and gas sector in North America, which is driving up plate and pipe demand."

Jindal United Steel in Baytown, Texas, near Houston is one of the largest plate mills in the U.S. The firm buys slab steel from merchant suppliers and rolls plates to order. JSW Steel's vice chairman and managing director, Sajjan Jindal, says the company will ship slabs from its Vijayanagar plant to the U.S. to convert them into high-end products such as plates and pipes.