India-headquartered steelmaker Tata Steel announced that it is in talks with Swedish steelmaker SSAB AB towards sale of Netherlands unit, The media statement released by the company stated that discussions towards potential sale of the business has already commenced. The proposed acquisition will cover the company’s Dutch steelmaking operations including the Ijmuideen steelworks.
Commenting on the progress, Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel stated that the company will undertake a due process and move to the next stages including consultation and due diligence, based on the discussions initiated by SSAB Sweden. The company looks forward to hive off Tata Steel Netherlands from Tata Steel UK, by pursuing separate strategic paths for both.
The company has been trying hard to find a solution for its loss-making European subsidiaries. It must be noted that the merger deal between Tata Steel and Thyssenkrupp AG for its European unit had hit roadblocks due to regulatory hurdles.
At the same time, the company has decided to reorganize its India business by grouping its subsidiaries into four clusters- long products, downstream, mining, and utilities and infrastructure. The reorganization into four verticals is expected to create value for its stakeholders by driving growth.
