Tata Steel wins bid to acquire Bhushan Steel
23 March 2018
Tata Steel has been declared as the successful resolution applicant by the committee of creditors (CoC) of Bhushan Steel Ltd, the company announced on Friday.
It also accepted the letter of intent for Bhushan Steel under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code 2016, Tata Steel said .
The company said this was subject to obtaining necessary regulatory approvals, including approval from the National Company Law Tribunal (NCLT) and the Competition Commission of India.
Tata Steel was the highest bidder – with an offer of Rs35,000 crore — for the purchase of a controlling stake in Bhushan Steel.
The other major bidder was JSW Steel. Earlier this month, after Tata Steel was selected as the preferred buyer, employees of Bhushan Steel challenged the decision.
The NCLT had asked the CoC to consider the objections raised by the employees.
The latest development, however, ensures Tata Steel’s acquisition of Bhushan Steel Ltd, which has a 5-million tonne steel plant in Odisha.