Tatas to merge seven metal companies into Tata Steel
New Delhi, September 23
Tata Group will merge seven of its metal companies into Tata Steel to drive efficiencies and reduce costs. The amalgamation will be through a share swap, Tata Steel said.
The Board of Tata Steel approved the amalgamation of subsidiaries — Tata Steel Long Products, Tata Metaliks, The Tinplate Company of India, TRF Ltd, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining into itself.
Share swap ratios finalised
- Share swap ratios under the merger scheme would be 17:10 for TRF (17 shares of Tata Steel for every 10 shares of TRF), 67:10 for TSPL (67 shares of Tata Steel for every 10 shares of TSPL), 33:10 for Tinplate (33 shares of Tata Steel for every 10 shares of Tinplate) and 79:10 for Tata Metaliks (79 shares of Tata Steel for every 10 shares of Tata Metaliks)
- Tata Steel Mining Limited and S&T Mining Company Limited are both wholly-owned subsidiaries
Meanwhile, the company has withdrawn from the earlier merger scheme of Tata Metaliks and Tata Steel Long Products (TSPL).
Explaining the rationale behind the merger scheme, Tata Steel in a statement said the resources of the merged entities can be pooled to unlock the opportunity for creating shareholder value.
Besides citing other synergies, it also said the mergers will result in utilisation of each other’s facilities in a more efficient manner. Marketing and distribution network of both entities can be collaborated, it said.
The salt-to-software conglomerate under N Chandrasekaran has been consolidating businesses that share common synergies. Earlier this year, the group had announced the merger of Tata Consumer and Tata Coffee.
