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Tata Steel Board approves merger of six subsidiaries

New Delhi: Tata Steel will merge itself into six of its subsidiaries, a statement said on Friday.

A proposal in this regard was approved by the company’s board on Thursday.

“The Board of Directors of Tata Steel has considered and approved the plans for the proposed amalgamation of six subsidiaries in and with Tata Steel,” the statement issued by Tata Steel said.

are helpful Tata Steel Long Products Limited in which Tata Steel holds 74.91 percent equity, The Tinplate Company of India Limited (74.96 percent), Tata Metallix Limited (60.03 percent), The Indian Steel and Wire Products Limited (95.01 percent equity holding), Tata Steel Mining Limited and S&T Mining Company Limited (both wholly owned subsidiaries).

“Tata Steel Board has approved the amalgamation of strategic businesses in the company,” the statement said.

The Board also approved the merger of Tata Steel’s subsidiary TRF Limited (34.11 percent equity) with Tata Steel Limited.

Tata Steel further said that the proposed amalgamation aims to drive synergies, streamline the group’s holding and management structure, and consolidate and strategically enhance downstream operations and engineering capabilities.

The Board has considered the proposal on the basis of an independent fairness and evaluation opinion. It followed the procedure laid down under the Companies Act, 2013 and Securities and Exchange Board of India Regulations.

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

“Upon completion, there will be further opportunities towards reduction in overhead and corporate costs. Each proposed amalgamation will be value-added to shareholders,” the company said.

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

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

According to the statement, since 2019, Tata Steel has reduced 116 affiliated entities (72 subsidiaries ceased to exist, 20 associates and joint ventures ceased and 24 companies are currently under liquidation) .

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