Tata Steel may extend Highveld bid to other lines

Tata Steel is mulling a proposal to bid for a majority stake in South African firm Highveld Steel and Vanadium Corporation Ltd's steel and vanadium businesses, said an industry official.

The move comes after the owners of Highveld asked Tata Steel to look at not just buying the steel unit but also vanadium business.

Anglo American, the owners of Highveld, have put their 79 per cent stake in the company on the block.

A Tata Steel spokesman declined to comment on the exact nature of discussions. "We are actively considering a bid for Highveld," he said, without elaborating.

The company is the sole bidder for Highveld after Mittal Steel pulled out of the race for the unit. Tata Steel had expressed interest in taking over Highveld's steel business and had made a conditional offer for the same.

Vanadium, produced mostly as ferrovanadium, is used as a steel additive. It is used in various applications, including alloys and speciality stainless steel.

If the acquisition goes through, it would be the third steel plant acquisition by Tata Steel in as many years.

In the last two years, Tata Steel has acquired NatSteel of Singapore and Thailand-based Millenium Steel Ltd. It has also acquired a stake in coal property in Australia.

The country's largest private sector steel producer has aggressive plans to expand abroad and in the country through acquisitions and green field ventures.