Tata Steel completes merger of 5 businesses, shelves TRF merger plan

Tata Steel on Wednesday announced the merger of five strategic businesses of the group with itself as part of an integration process aimed at simplifying business portfolio. In its filing with stock exchanges, the company said it has completed the regulatory processes and the integration process is underway.

The five merged companies include Tata Steel Mining Limited, Tata Steel Long Products Limited, S&T Mining Company Limited, Tinplate Company of India Limited and Tata Metaliks Limited with a combined annual turnover of Rs19,700 crore in FY23.

Further, Tata Steel said the merger process of other three group companies - Bhubaneswar Power Pvt Ltd, Angul Energy Ltd and The Indian Steel and Wire Products Ltd - is in advanced stages.

The steel major, however, decided not to proceed with the amalgamation of TRF with the proposed merger of its associate company TRF, in which Tata Steel holds 34 per cent stake. 

“The merger of five companies with a cumulative annual turnover of Rs19,700 crore in FY23, in record time, presents a unique opportunity for consolidation of the downstream operations. This will enable growth in value added segments by leveraging Tata Steel’s nationwide marketing and sales network,” the company stated in a release.

Tata Steel had, in 2022, announced plans to merge nine strategic businesses as part of a long-term strategy. 

Tata Steel holds 100 per cent stake in Bhubaneswar Power, holds 99.99 per cent stake in Angul Energy and 98.15 per cent in The Indian Steel and Wire Products. The merger process of the three companies is in advanced stages with the respective jurisdictional company law tribunals and the company expects the merger process by the April-July 2024-25 quarter, subject to regulatory approvals.

In the case of TRF Ltd, the boards of both the companies have decided not to pursue the amalgamation process, Tata Steel said, adding that with active support from Tata Steel, TRF has successfully overcome business challenges and is witnessing a turnaround in performance.