Posted on 23 Feb 2024
Indian steelmaking major Tata Steel has received approval from the National Company Law Tribunal, Mumbai Bench (NCLT) to withdraw its merger plan with TRF, Kallanish notes.
In a 7 February exchange filing, Tata Steel’s board announced its plans to not continue with its merger with TRF as the unit was witnessing a turnaround in its business. TRF is involved in bulk material handling equipment, systems and allied services.
In September 2022, Tata Steel had announced its plans to merge nine of its businesses under the Scheme of Amalgamation in order to simplify and streamline its portfolio.
Five of these businesses, with a cumulative annual turnover of INR 197 billion ($2.38 billion), have already merged with Tata Steel. Tata Steel Mining merged effective 1 September 2023, Tata Steel Long Products, merged effective 15 November 2023, S&T Mining merged effective 1 December 2023, Tinplate Company of India (TCIL) merged effective 15 January 2024, and Tata Metaliks merged effective 1 February 2024 (see Kallanish Passim).
The three other companies, Bhubaneswar Power, Angul Energy and The Indian Steel and Wire Products are currently in the advanced stages of the amalgamation process under their respective jurisdictional company law tribunals.
These mergers are set to be completed by end-June, subject to regulatory approvals.
Source:Kallanish
