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Tata Steel wins bid to acquire bankrupt Bhushan Steel

3/24/2018

New Delhi, Tata Steel, one of the leading steel producers in the world with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA), on friday announced that it has won a bid to acquire bankrupt Bhushan Steel Ltd, for an undisclosed sum of money. Though the amount is not disclosed by TATA Group, but sources said the all-cash deal was worth over Rs 35,000 crore.On the completion of the acquiring process, this will help Tata Steel to become India's biggest steel maker. While announcing the bid, Tata Steel in its statement said, 'Tata Steel Limited (Tata Steel) hereby informs that it has been declared as the successful resolution applicant by the Committee of Creditors (CoC) of Bhushan Steel Limited (BSL) on March 22, 2018, subject to obtaining necessary regulatory approvals, including approval from the NCLT and the Competition Commission of India. 'Tata Steel has accepted the Letter of Intent for BSL under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC),' the statement added. As per the estimates, Bhushan Steel will add 5.6 million tonnes of capacity to Tata Steel's current 13 MTPA production capacity. BSL, which was on the RBI's first list of 12 companies to be referred to the bankruptcy court, claims to be India's third largest secondary steel producer, with an annual capacity of 5.6 million tonnes.

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