Tata Steel to buy Bhushan Steel

Tata Steel may get access to the assets of Bhushan Steel as the company is identified as highest bidder by the Committee of Creditors. Bhushan Steel owes Rs. 45,000 crore to the banks.

Tata Steel has successfully outbid JSW Living Private Limited and the Employees of Bhushan Steel Limited to emerge with the highest evaluated Compliant Resolution Plan for the debt-laden steelmaker. The company informed the exchanges that it has received formal communication from the resolution professional of Bhushan Steel. The creditors are in talks with Tata Steel to fine tune the final resolution plan.

Tata Steel Group is world's leading steel producer with a capacity of approx. 27.5 MTA as on March 31, 2017. While Bhushan Steel is among the country's largest integrated steel players with a capacity of 5.6 MTA. Experts believe that Tata Steel will gain from Bhushan's captive iron ore mines and benefit from market synergies.

Meanwhile, on Thursday at 10:16 hours, the stock of Bhushan Steel was trading at Rs. 45.45 per share, up by 11.95 per cent. Tata Steel was at Rs. 642.30 per share, up 0.88 per cent.