New Delhi: Fair trade regulator CCI on Tuesday cleared Tata Steel's proposal to acquire a 50.01 per cent equity stake in Odisha-based Thriveni Pellets. The development came after Tata Steel in December last year announced that it entered into a pact to acquire a majority stake in Thriveni Pellets Pvt Ltd for Rs 636 crore.
"The proposed combination relates to Tata Steel Limited's proposed acquisition of 50.01 per cent equity share capital of Thriveni Pellets Private Limited (TPPL) from Thriveni Earthmovers Private Limited," the regulator said in a release. Tata Steel Limited is engaged in integrated steel manufacturing operations, ranging from mining to steelmaking to further processing. It is also engaged in the mining of iron ore and the production of iron ore pellets, sponge iron and crude steel.
TPPL is engaged in the sale of iron ore pellets in the country. TPPL's wholly-owned subsidiary, Brahmani River Pellets Ltd, is also engaged in production and sale of iron ore pellets in India. In a separate release, CCI approved the proposed combination between Bhushan Power and Steel Ltd (BPSL), JSW Sambalpur Steel Ltd (JSW Sambalpur), JFE Steel Corporation (JFE), and JSW Kalinga Steel Ltd (JSW Kalinga).
JFE is part of the JFE Group, under which there are three operating companies, namely - JFE (steel business), JFE Engineering Corporation and JFE Shoji Corporation (trading business). JSW Kalinga is a wholly-owned subsidiary of Piombino Steel Ltd (PSL), which is a subsidiary of JSW Steel. JSW Kalinga is yet to commence commercial operations. JSW Sambalpur is a wholly-owned subsidiary of JSW Kalinga. After the completion of the proposed transaction, it will own the "target business". JSW Sambalpur is yet to commence commercial operations.
BPSL is engaged in integrated steel manufacturing operations, including downstream processing of finished steel products. As on date, BPSL is an indirect subsidiary of JSW Steel, held through PSL. The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
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