The world?s largest steel manufacturer, ArcelorMittal, has purchased another 4.9% in India?s Uttam Galva Steel, taking the steel major?s holding in the domestic company to 33.7%. The deal is estimated to be around Rs 75-80 crore.

ArcelorMittal had on February 10, during its fourth quarter results said it would purchase an additional 4.9% from the promoter RK Miglani family in due course.

An Uttam Galva spokesperson confirmed the development, however, it could not be ascertained when the share sale happened. Ankit Miglani, director commercial of Uttam Galva was not available for comment.

?We have bought the 4.9 % at the open offer price of Rs 120 a share,? the ArcelorMittal spokesperson reportedly said on Thursday.

ArcelorMittal closed its tender offer on January 7, 2010, where it acquired a 28.8% stake in Uttam Galva, a producer of cold rolled steel and galvanised products.

Uttam Galva shares on Thursday closed at Rs 109.5, up 2.05% from the previous day?s close on the Bombay Stock Exchange.

ArcelorMittal, in September last year had entered into an alliance with the Miglani family and signed a share purchase agreement with the existing promoter R K Miglani family for the acquisition of 5.6 % shares in the company. This transaction provided ArcelorMittal with its first major manufacturing presence in India.

Aditya Mittal, ArcelorMittal?s chief financial officer during the fourth quarter results had said, ?ArcelorMittal continues to assess how the company can grow and strengthen its cooperation with Uttam Galva but said there were no plans to announce a further increase in its Uttam Galva equity stake.? In what is seen as a desperate move by ArcelorMittal to enter India, experts believe in the long run, this might lead to Uttam Galva’s complete acquisition by ArcelorMittal. ?Indian steel markets are likely to offer good prospects in the long term but risks in large Greenfield-scale projects are enormous – from land acquisition to statutory clearances to raw material securities. Hence, an operational asset may be better suited for acquisitions,? said a metal analyst.