Abu Dhabi-based Emirates Steel Industries has informed that it is in negotiation to purchase Shadeed Iron & Steel in Oman.

The sources informed that a deal in this regard is likely to be inked by the end of November.

Sources added that the deal will be part of Emirates Steel's expansion proposal to increase its production from two million tonnes to 6.5 million tonnes every year by 2013-2014 through capacity expansions as well as acquisitions.

Shadeed Iron & Steel, which is controlled by Abu Dhabi’s Al Ghaith Holdings, is having a capacity to make  1.5 million tones steel annually.