Tata Group's 7 metal companies to be merged with Tata Steel

Tata Group has announced the amalgamation of all metal companies of the group into Tata Steel. The company in an exchange filing informed that the Board of Directors of the Company at its meeting held on September 22 considered and approved the 7 schemes of amalgamation.

The seven metal companies that will be merged with the parent metal company Tata Steel Limited are:

1. Tata Steel Long Products Limited 

2. The Tinplate Company of India Limited 

3. Tata Metaliks Limited 

4. TRF Limited 

5. The Indian Steel & Wire Products Limited 

6. Tata Steel Mining Limited 

7. S & T Mining Company Limited

Tata Steel said that the proposed amalgamation is aimed at driving synergies, simplifying the group holding and management structure, and consolidating and strategically growing downstream operations and engineering capabilities

The Board has considered the proposal based on independent fairness and valuation opinions. It followed the process laid down under the Companies Act, 2013 and Securities and Exchange Board of India Regulations.

The proposed amalgamation will enhance management efficiency, drive sharper strategic focus and improve agility across businesses based on the strong parental support from the Tata Steel leadership.

"On completion, there will be further opportunities towards reduction of overhead and corporate costs. Each of the proposed amalgamations will be value-accretive for shareholders," the company said.

The Boards of all the amalgamating companies have also considered the proposals following due process and have unanimously approved the merger.

The proposed amalgamation is also part of Tata Steel's continuing journey to simplify the group holding structure, the company said.

According to the statement, since 2019, Tata Steel has reduced 116 associated entities (72 subsidiaries have ceased to exist, 20 associates and JVs have been eliminated and 24 companies are currently under liquidation).

With PTI Inputs