New Delhi sources stated that the industry sources put the acquisition price at Rs 35,000 crore. Meanwhile the all cash deal, when completed, will help Tata Steel become the country’s biggest steel maker. Bhushan Steel will add 5.6 million tonnes of capacity to Tata Steel’s 13MTPA production capacity.
According to sources Tata Steel said it “has been declared as the successful resolution applicant by the Committee of Creditors of Bhushan Steel on March 22, 2018, subject to obtaining necessary regulatory approvals, including approval from the NCLT and the CCI”. Earlier JSW Steel too had bid for Bhushan Steel in an auction conducted after the firm defaulted in payment of close to Rs 48,100 crore of loans to banks.
The company said “Tata Steel has accepted the Letter of Intent for BSL
under Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy
Code 2016". Further in a separate filing, BSL said, “As per instructions
of the RP, we wish to inform you that the CoC of Bhushan Steel has approved the
resolution plan submitted by Tata Steel”.
