According to a statement released on Friday, Tata Steel would merge six of its subsidiary businesses with itself.
The company’s Board on Thursday adopted a proposal in this respect, according to the statement.
According to a statement from Tata Steel, “The Board of Directors of Tata Steel evaluated and approved proposals for the proposed merger of six companies into and with Tata Steel.”
The subsidiaries include Tata Steel Mining Limited, S & T Mining Company Limited, The Tinplate Company of India Limited, Tata Metaliks Limited, The Indian Steel & Wire Products Limited, and Tata Steel Long Products Limited, in which Tata Steel owns 74.91 percent of the stock (both wholly-owned subsidiaries).
The announcement read, “Tata Steel Board authorises the merging of strategic enterprises within the corporation.
The Board also authorised the merger of TRF Limited, a Tata Steel affiliate business, into Tata Steel Limited (34.11% equity).
Further, Tata Steel stated that the proposed merger aims to create synergies, streamline the group holding and management structure, and consolidate and expand downstream operations and engineering skills in a strategic manner.
The proposal has been taken into consideration by the Board based on impartial fairness and valuation views. It adhered to the procedures outlined by the Securities and Exchange Board of India Regulations and the 2013 Companies Act.
Based on the strong parental support from the Tata Steel leadership, the proposed merger will increase management effectiveness, create sharper strategic focus, and boost agility across companies.
“After completion, there will be more chances to cut corporate expenses and overhead. For shareholders, each of the planned mergers will increase value “The business stated.
The merger has been unanimously accepted by the boards of all the firms merging after full consideration of the proposals.
According to the firm, the planned merger is also a step in Tata Steel’s ongoing effort to streamline the group holding structure.
The statement claims that Tata Steel has cut 116 affiliated firms since 2019. (72 subsidiaries have ceased to exist, 20 associates and JVs have been eliminated and 24 companies are currently under liquidation).
