Tata Steel adds heft to its Bhushan Steel acquisition with a successful bid for Bhushan Energy
Tata Steel’s acquisition of Bhushan Steel (now known as Tata Steel BSL) has been sweetened by its successful bid for Bhushan Energy. This company supplies power to Tata Steel BS’s Odisha plant, with two 150mw units and one 185mw unit set up within the plant. Tata Steel BSL also owns a 47.8percent stake in Bhushan Energy, and in 2017-18 it paid Rs589crore to it for buying power. An acquisition could get it power at cost, while gaining full control over a strategic asset. Since Tata Steel plans to merge Tata Steel BSL with itself, it may merge the power asset too at a later stage.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 31, 2019 05:20 pm