The boards of Tata Steel and TRF Ltd have decided not to go ahead with the amalgamation process, the steelmaker said on February 7, adding TRF successfully navigated a highly challenging operating environment to turnaround its performance.
TRF shares hit 20 percent upper circuit after the announcement. The company is in the business of undertaking turnkey projects of materials handling for the infrastructure sector and industrial sector.
Tata Steel has completed the amalgamation process for five businesses. The entities include Tata Steel Mining Limited, Tata Steel Long Products, S&T Mining Company , The Tinplate Company of India and Tata Metaliks Limited. All five companies had reported cumulative annual turnover of Rs 19,700 cr in FY23.
" 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," the steelmaker said.
In 2022, Tata Steel had announced its intent to amalgamate nine strategic businesses to simplify operations.
For the remaining three companies, Bhubaneswar Power Private Limited, (wholly owned subsidiary of Tata Steel), Angul Energy Limited (Tata Steel shareholding 99.99 percent) and The Indian Steel and Wire Products Limited, in which Tata Steel holds 98.15 percent, the merger process is in advanced stages.
The process is expected to be completed by Q1FY25, subject to regulatory approvals, Tata Steel said.
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