domingo, octubre 2, 2022
InicioEconomyTata Steel: Mega Merger: 7 steel companies of Tata Group will be...

Tata Steel: Mega Merger: 7 steel companies of Tata Group will be merged with Tata Steel

In an attempt to consolidate its steel business, Tata Group on Friday announced it would merge seven of its steel companies into Tata Steel.

The Board of Directors of Tata Steel approved the merger of seven subsidiaries:

The , , Indian Steel & Wire Products, Tata Steel Mining and S&T Mining into and with their parent company.

The decision was made at yesterday’s board meeting of the company, the exchange said.

The company abandoned the previous merger scheme between Tata Metaliks and Tata Steel Long Products (TSPL). Under the new merger scheme, Tata Steel will provide 69 shares for every 10 shares in TSPL. For Tata Metaliks, Tata Steel will grant 79 shares for every 10 shares of Tata Metaliks. Tata Steel will provide 33 shares for every 10 shares of Tinplate and 17 shares for every 10 shares of TRF.

Explaining the nature of the merger scheme, Tata Steel said that the resources of the combined companies could be pooled to create an opportunity for shareholder value creation.

Among other synergies, it also states that the mergers will lead to more efficient use of each other’s capacities. According to him, the marketing and distribution network of both companies can be combined.

“In line with the 5S strategy at the group level – Simplify, Synergy, Scale, Sustainability and Speed ​​– the proposed scheme will simplify the group holding structure, increase flexibility to enable faster decision making, eliminate administrative duplication and therefore reduce the administrative costs of maintaining individual organizations,” Tata Steele said.

The mega-merger plan will require the approval of the shareholders of all seven companies, as well as shareholders of Tata Steel, regulators and stock exchanges. Under the leadership of N. Chandrasekaran, Tata Group is trying to consolidate its enterprises united by a common synergy. Earlier this year, the group announced the merger of Tata Consumer and Tata Coffee. Media reports this week suggested that the Tats now plan to merge Air Asia India and Vistara under the Air India brand by 2024.



Por favor ingrese su comentario!
Por favor ingrese su nombre aquí

Most Popular

Recent Comments