New Delhi: Tata Steel on Friday said it has won a bid to acquire bankrupt Bhushan Steel for an undisclosed sum of money. Industry sources put the acquisition price at Rs 35,000 crore.
The all-cash deal, when completed, will help Tata Steel become the country’s biggest steel maker. Bhushan Steel will add 5.6 million tonnes of capacity to Tata Steel’s 13MTPA production capacity.
In a statement, Tata Steel said it “has been declared as the successful resolution applicant by the Committee of Creditors of Bhushan Steel on March 22, 2018, subject to obtaining necessary regulatory approvals, including approval from the NCLT and the CCI”.
JSW Steel too had bid for Bhushan Steel in an auction conducted after the firm defaulted in payment of close to Rs 48,100 crore of loans to banks. “Tata Steel has accepted the Letter of Intent for BSL under Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016,” the company said.
In a separate filing, BSL said, “As per instructions of the RP, we wish to inform you that the CoC of Bhushan Steel has approved the resolution plan submitted by Tata Steel”.
