Tata Steel completes amalgamation of five businesses, TRF merger called off

Tata Steel on Wednesday said it has decided not to pursue the amalgamation process with TRF.

In September 2022 and on two subsequent dates, Tata Steel announced it would amalgamate nine strategic businesses in line with its long-term strategy to simplify the business portfolio.

The company on Wednesday said it amalgamated five of these businesses after duly completing the regulatory processes. 

These include Tata Steel Mining Limited, Tata Steel Long Products, S&T Mining, The Tinplate Company of India Limited and Tata Metaliks.

Tata Steel said the merger of five companies with a cumulative annual turnover of Rs 19,700 crore in FY23, in record time, presents a unique opportunity for consolidation of the downstream operations.

“This will enable growth in the value-added segments by leveraging Tata Steel’s nationwide marketing and sales network. The amalgamation is value-accretive and will also drive synergies through raw material security, centralised procurement, optimisation of inventories, reduced logistics costs, and better facility utilisation,” it mentioned.

In the case of TRF, the boards of both companies decided not to pursue the amalgamation process, Tata Steel said.

The steel major said that since the announcement of the intended merger of TRF in September 2022, Tata Steel has been providing significant operational and financial support by way of placement of orders and infusion of funds. 

“With the active support from Tata Steel, TRF has successfully navigated a highly challenging operating environment, witnessing a turnaround in its business performance.”

TRF mentioned in its regulatory filing that an application to withdraw the scheme of amalgamation has been filed with the National Company Law Tribunal (NCLT), Kolkata Bench.

Tata Steel said it would continue with its simplification journey and leverage relevant opportunities in the future.