Tata Steel has completed the acquisition of BlueScope Steel Asia Holdings’ (BSAH) 50% holding in Tata BlueScope Steel Private Limited (TBSPL), taking its direct and indirect ownership to 99.99%, Kallanish notes.
The Indian steelmaker acquired 43.3 million equity shares of face value INR 10 ($0.1) each for a consideration of INR 1,099.97 crore ($122 million). The transaction was executed in line with a share purchase agreement signed on 12 November and closed on 31 December, as per the company’s latest exchange filing.
TBSPL was previously a 50:50 joint venture between Tata Steel, via its subsidiary Tata Steel Downstream Products, and Australia’s BlueScope Steel, through its Asia holdings arm BSAH. Following completion, TBSPL has become an indirect subsidiary of Tata Steel.
Tata BlueScope is active in coated steel and building solutions in India, serving infrastructure, industrial and construction markets. Full ownership is expected to give Tata Steel greater strategic and operational control over the downstream business, as it continues to expand its value-added steel portfolio.
Tata Steel chief executive and managing director TV Narendran highlighted the company’s downstream portfolio focus on 1 January. “While volume expansion is limited, we are focusing on facilities to add value to the products manufactured here,” he said at a recent event.
