Tata Steel board approves merger of seven entities into itself

The proposed amalgamation is also part of Tata Steel’s continuing journey to simplify the group holding structure

The Board of Directors of Tata Steel Ltd at its meeting held on September 22 considered and approved schemes for the proposed amalgamation of six subsidiaries and an associate company into and with Tata Steel Ltd. to simplify the group holding structure.

The six subsidiaries are majority owned by Tata Steel and include Tata Steel Long Products Ltd. (74.91% equity holding), The Tinplate Company of India Ltd. (74.96% equity holding), Tata Metaliks Ltd. (60.03% equity holding), The Indian Steel & Wire Products Ltd. (95.01% equity holding), Tata Steel Mining Ltd. and S & T Mining Company Ltd. (both wholly owned subsidiaries). 

The Board also approved the amalgamation of TRF Ltd (34.11% equity holding), an associate company into Tata Steel Ltd.

Based on the reports of independent valuers, the Board has approved swap ratios for the proposed amalgamations:

“The proposed amalgamations will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from Tata Steel leadership,” Tata Steel said in a statement released on Friday.

“In line with Tata Steel’s long-term strategy, the consolidation of the downstream operations will enable growth in value added segments by leveraging Tata Steel’s nationwide marketing and sales network,” the statement said.

“The amalgamations will also drive synergies through raw material security, centralized procurement, optimization of inventories, reduced logistics costs, and better facility utilization,” it added.