Tata Steel Long Products signs definitive agreements to acquire 93.71% stake in Neelachal Ispat Nigam

Tata Steel Long Products (TSLP) and Tata Steel (TSL) have on 10 March 2022, executed a Share Sale and Purchase Agreement with MMTC, NMDC, MECON, Bharat Heavy Electricals, Industrial Promotion and Investment Corporation of Odisha, Odisha Mining Corporation, President of India, Government of Odisha, Neelachal Ispat Nigam (NINL) for acquisition of 93.71% equity shares in NINL.

The acquisition provides an inorganic growth opportunity for TSLP to grow in the long products business and leverage the captive iron ore mines of NINL. The total consideration of Rs 12,100 crore reflects the enterprise value, from which the liabilities shall be settled and the balance shall be paid for acquisition of 93.71% equity shares in NINL.

NINL was incorporated on 27 March 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL initially set up a 1.1 MTPA blast furnace in 2002 to produce pig iron. Subsequently, other supporting facilities like sinter plant, coke oven plant, power plant, etc. were commissioned.

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