Friday, March 29, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Tata Steel board approves merger of six subsidiary companies

Tata Steel board approves merger of six subsidiary companies

The board-approved amalgamation of subsidiaries is Tata Steel Long Products Limited, Tinplate Company of India Limited, Tata Metaliks Limited, The Indian Steel & Wire Products Limited, Tata Steel Mining Limited, and S & T Mining Company Limited.

PTI Reported By: PTI New Delhi Published on: September 23, 2022 12:29 IST
Tata Steel
Image Source : PTI/FILE The Board of Directors of Tata Steel considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel.

Highlights

  • Tata Steel Board approves the amalgamation of strategic businesses into the company.
  • The Board also approved the amalgamation of TRF Limited, an associate company of Tata Steel.
  • The proposed amalgamation will enhance management efficiency, drive sharper strategic focus.

Tata Steel will merge with itself six of its subsidiary companies, a statement said on Friday. A proposal in this regard was approved by the Board of the company on Thursday, it said. "The Board of Directors of Tata Steel considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel," the statement issued by Tata Steel said.

The subsidiaries are Tata Steel Long Products Limited in which Tata Steel holds 74.91 percent equity, The Tinplate Company of India Limited (74.96 percent), Tata Metaliks Limited (60.03 percent), The Indian Steel & Wire Products Limited (95.01 percent equity holding), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly-owned subsidiaries). "Tata Steel Board approves the amalgamation of strategic businesses into the company," the statement said.

The Board also approved the amalgamation of TRF Limited (34.11 percent equity), an associate company of Tata Steel, into Tata Steel Limited. Tata Steel further said the proposed amalgamation is aimed at driving synergies, simplifying the group holding and management structure, and consolidating and strategically growing downstream operations and engineering capabilities

        
The Board has considered the proposal based on independent fairness and valuation opinions. It followed the process laid down under the Companies Act, 2013, and the Securities and Exchange Board of India Regulations. The proposed amalgamation will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from the Tata Steel leadership. 
       
"On completion, there will be further opportunities towards reduction of overhead and corporate costs. Each of the proposed amalgamations will be value-accretive for shareholders," the company said. The Boards of all the amalgamating companies have also considered the proposals following due process and have unanimously approved the merger.

The proposed amalgamation is also part of Tata Steel's continuing journey to simplify the group holding structure, the company said. According to the statement, since 2019, Tata Steel has reduced 116 associated entities (72 subsidiaries have ceased to exist, 20 associates and JVs have been eliminated and 24 companies are currently under liquidation).

Also read: Ratan Tata among newly appointed trustees of PM CARES Fund

Also read: Tata in talks to build iPhones for Apple in India: Report

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement