Tata Steel board approves merger of six subsidiaries

A proposal to that effect was approved by the company’s board of directors on Thursday.



“The Board of Directors of Tata Steel plans for the proposed merger of six subsidiaries into and with Tata Steel have been considered and approved,” said Tata Steel’s statement.

The subsidiaries are: Tata Steel Long Products Limited in which Tata Steel owns 74.91 percent shares, The Tin Company of India Limited (74.96 percent), Tata Metaliks Limited (60.03 percent), The Indian Steel & Wire Products Limited (95.01 percent equity interest), Tata Steel Mining Limited and S&T Mining Company Limited (both wholly owned subsidiaries).

“Tata steel plate approves the merger of strategic companies into the company,” the statement said.

The council also approved the merger of TRF Limited (34.11 percent equity), an associate of Tata Steel, in Tata Steel Limited.

Tata Steel further said that the proposed merger is aimed at driving synergies, simplifying the group’s holding and management structure and consolidating and strategically growing downstream operations and engineering capabilities.

The Board has assessed the proposal on the basis of independent fairness and valuation advice. It followed the process laid down in the Companies Act, 2013 and the Securities and Exchange Board of India Regulations.

The proposed merger will improve management efficiency, drive a sharper strategic focus and improve agility across all businesses based on the strong parental support of Tata Steel’s leadership.

“Upon completion, there will be further opportunities to reduce overhead and operating costs. Any of the proposed mergers will be value-enhancing for shareholders,” the company said.

The Boards of Directors of all merging companies also considered the proposals after due process and unanimously approved the merger.

The proposed merger is also part of Tata Steel’s ongoing journey to simplify the group’s holding structure, the company said.

According to the statement, Tata Steel has reduced 116 associates since 2019 (72 subsidiaries have ceased to exist, 20 associates and joint ventures have been eliminated and 24 companies are currently in liquidation).

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