All of Tata Steel‘s metal businesses have been approved for consolidation by the group’s board of directors. The merger of the business’s seven metal subsidiaries with its main metal company, Tata Steel Limited, was approved by the company board during its meeting on 22nd September, Thursday. The Tata Steel board has authorised the merging of six subsidiaries and one associate company into the steel giant in a significant move to combine its metals and mining divisions and streamline the holding structure.
Which Metal Companies will be Merged with Tata Steel?
- Tata Steel Long Products Limited
- The Tinplate Company of India Limited
- Tata Metaliks Limited
- TRF Limited
- The Indian Steel & Wire Products Limited
- Tata Steel Mining Limited
- S & T Mining Company Limited
These are the 7 metal businesses in the Tata group that will merge with Tata Steel.
Indian Stock Exchanges were Notified of Tata Group‘s Plans
Tata Group announced the decision to Indian stock market exchanges, stating that the company’s board of directors had, among other things, examined and approved the following 7 schemes of amalgamation at its meeting on September 22, 2022.
1] Tata Steel Limited, the parent business, and Tata Steel Long Products Limited.
2] The Tinplate company of India Limited (also known as the “TCIL-Transferor Company”) will be merged with Tata Steel Limited, which is the parent company.
3] Tata Steel Limited, along with Tata Metaliks Limited.
4] TRF Limited has entered into and partnered with Tata Steel Limited.
5] ISWP into and with Tata Steel Limited, the parent company of Indian Steel & Wire Products Limited.
6] Tata Steel Mining Limited into and with Tata Steel Limited, the latter of which is the parent company.
7] S & T Mining Firm Limited (also known as “S & T Mining-Transferor Company”) into and with Tata Steel Limited, the latter being the parent company.
Each Scheme is dependent on getting the approval from the-
(a) The necessary majority of the relevant Transferor Companies’ and Transferee Companies’ shareholders
(b) Competent Authority
(c) SEBI
(d) The National Stock Exchange of India Limited and the BSE Limited, collectively referred to as Stock Exchanges.
(e) Any further regulatory, legislative, governmental, or quasi-judicial licences, licences, or sanctions that may be required under applicable laws.
Why this Initiative is Taken by Tata Steel Long Products Limited?
Based on the strong parental support from Tata Steel leadership, the proposed mergers will increase management effectiveness, generate sharper strategic focus, and improve agility across businesses, according to a statement from Tata Steel.
The amalgamation of downstream activities will be facilitated by Tata Steel’s statewide marketing and sales network, in line with the company’s long-term strategy, to promote growth in value-added categories. Synergies will also be created by the amalgamations through improved facility use, centralised procurement, inventory optimization, and lower logistics costs, it was said.
Tata Steel‘s ongoing effort to streamline the corporate holding structure includes the merger as well. Tata Steel has cut 116 related entities since 2019.Once completed, there will be more chances to cut corporate expenses and overhead, and each of the planned mergers will increase value for shareholders, according to the statement.
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