Global giant Tata Steel on Tuesday said its arm T S Global Holdings (TSGH) has terminated pact with HBIS Group to sell stake in South-East Asia business.
Tata Steel's wholly owned subsidiary TSGH had in January signed definitive agreements with HBIS Group to divest majority stake in its South-East Asia business in Beijing, China.
"We have been informed by HBIS that they have not been able to procure the requisite approvals from the Hebei Government, one of the key conditions precedent for the proposed transaction. Both parties have, therefore, decided not to extend the definitive agreements.
"TSGH had executed definitive agreements with HBIS Group Co Ltd (HBIS), to divest its equity stake in Tata Steel (Thailand) Public Company Ltd (TSTH) and NatSteel Holdings Pte Ltd (NSH) to a company in which 70 per cent equity shares was to be held by HBIS and the balance 30 per cent by TSGH," Tata Steel said in a statement.
The completion of transaction was subject to regulatory approvals, it added.
Post development Tata Steel will immediately begin engagement with other investors in continuation of its strategy to find a partner for the South-East Asian business, the statement said.
Tata Steel group is among top global companies with an annual crude steel capacity of 33 million tonnes. The group (excluding SEA operations) recorded a consolidated turnover of USD 22.67 billion in the financial year ending March 31, 2019.
HBIS Group was established on June 30, 2008 by the merger of Tangshan Iron and Steel Group and Handan Iron and Steel Group of Hebei Province in China. It is amongst the largest steel makers in the world.
The chinese firm is into home appliance, automotive steel, and supplies steel for nuclear power, marine engineering, bridges and construction.
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