Tata Steel has accepted the Letter of Intent for Bhushan Steel.
Tata Steel Ltd said on Friday that it had been selected as the successful resolution applicant for buying Bhushan Steel, Tata Steel announced in a stock market filing on Friday. Tata Steel has been declared as the successful resolution applicant by the committee of creditors of Bhushan Steel on March 22 subject to obtaining regulatory approvals, including approvals from the NCLT (National Companies Law Tribunal) and the competition commission of India (CCI). Tata Steel is among the the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum as on March 31, 2017. The Committee of Creditors of Bhushan Steel had on Thursday declared salt-to-software conglomerate Tata Group's steel business as the successful resolution applicant, subject to obtaining necessary regulatory approvals, Tata Steel said in a stock exchange filing.
Tata Steel has accepted the Letter of Intent for Bhushan Steel, it added. Earlier this month, the company had been selected as the highest bidder to buy a controlling stake in Bhushan Steel, as part of bankruptcy proceedings.
Tata Steel and India's biggest domestic steelmaker JSW Steel Ltd were the two primary industry bidders
for the acquisition of Bhushan Steel. Tata Steel is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries.
The Group recorded a consolidated turnover of US $18.12 billion in FY17. Tata Steel Group is spread across five continents with an employee base of nearly 70,000. Having bagged the Deming Application Prize and Deming Grand Prize for continuous improvement in 2008 and 2012 respectively, Tata Steel has now been recognised as the global 'Industry Leader' in 'Steel category' by Dow Jones Sustainability Index (2015).
Besides being a member of the World Steel Climate Action Programme, Tata Steel has also been felicitated with several awards including the Prime Minister's Trophy for the best performing integrated steel plant for 2013-14 (received in 2017). (With inputs from Reuters)