Visa Bao, Visa Steel to merge

China's Baosteel to pick up 5% in Visa Steel

China's Baosteel and Kolkata-based Visa Steel have decided to merge Visa Bao and Visa Steel. The amalgamation, which will result in a five per cent stake for Baosteel Resources in Visa Steel, was approved by the board of directors of Visa Steel and Visa Bao on Friday. "The lenders of Visa Steel and Visa Bao have already approved the amalgamation," the company said.

Visa Bao was set up in 2008 for building a ferro chrome plant in Odisha, in which Visa Steel holds a 65 per cent stake and Baosteel 35 per cent.

“The amalgamation will make Visa Steel one of the largest ferro chrome producers in India. The integration will improve the operational and cost efficiency of the ferro chrome business,” Vishal Agarwal, vice-chairman and managing director of Visa Steel, said.

Visa Steel is also in the process of transferring its special steel business having a 0.5 million tonne special steel plant, including blast furnace, sponge iron, steel melt shop, refining facilities and bar and wire rod mills, to its subsidiary, Visa Special Steel, to create a better focus and facilitate inviting a strategic investor.

Visa Steel has also formed a joint venture with SunCoke Energy, USA (one of the largest independent coke manufacturers), as a strategic investor in the coke business in 2013. Visa Steel holds a 51 per cent stake in the joint venture named Visa SunCoke and the balance 49 per cent is held by SunCoke Energy.