Tata Steel gets green light for Triveni Pellets deal; here’s what else you need to know
The consolidation process in the domestic steel sector received a major boost when the Competition Commission of India (CCI) approved two significant deals. The fair trade regulator has given the green light to Tata Steel’s acquisition of a majority stake in Odisha-based Triveni Pellets. The commission also approved another major proposal involving JSW Group companies and Japan’s JFE Steel Corporation.
Let’s look at the key details:
Tata Steel and Triveni Pellets Deal: ₹636 crore deal. The CCI has approved Tata Steel’s proposal to acquire a 50.01% equity stake in Triveni Pellets Private Limited (TPPL).
Background of the deal: Tata Steel announced last December that it had entered into an agreement with Triveni Earthmovers Private Limited to acquire a majority stake in Triveni Pellets for ₹636 crore.
Impact on business: Tata Steel is involved in integrated steel manufacturing, spanning from mining to steelmaking and further processing. The company is already active in iron ore mining and pellet production.
Target company: Triveni Pellets sells iron ore pellets in the country. Its wholly-owned subsidiary, ‘Brahmani River Pellets Limited’, is also engaged in the production and sale of pellets in India. This acquisition is expected to strengthen Tata Steel’s backward integration capabilities.
The CCI has also approved the proposed combination between Bhushan Power & Steel Limited (BPSL), JSW Sambalpur Steel Limited, Japan’s JFE Steel Corporation, and JSW Kalinga Steel Limited. Let’s learn more about this:
Company structure: BPSL, which is involved in the processing and integrated manufacturing of finished steel products, is currently an indirect subsidiary of JSW Steel. Japanese participation: JFE Steel Corporation, involved in this deal, is part of the JFE Group, which is active in the steel, engineering, and trading businesses.
New structure: Under the deal, JSW Sambalpur, a wholly owned subsidiary of JSW Kalinga, will acquire ownership of the target business after the proposed transaction is completed. It is worth noting that JSW Kalinga and JSW Sambalpur have not yet commenced their commercial operations.
