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tata group to merge seven metal companies with tata steel

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tata group to merge seven metal companies with tata steel

New Delhi, Sep 23 (PTI) The Tata group will merge seven of its metal companies with Tata Steel to increase efficiency and reduce costs. This merger will be done through the process of share swap. Tata Steel gave this information.

The Board of Directors of Tata Steel has approved the merger of Tata Steel Long Products Ltd., Tata Metaliks, The Tinplate Company of India, TRF Ltd., Indian Steel & Wire Products, Tata Steel Mining and S&T Mining.

Meanwhile, the company has withdrawn its earlier plan to merge Tata Metaliks and Tata Steel Long Products Ltd.

Explaining the reason behind the merger plan, the company said that bringing these entities together will help in increasing shareholder value.

The merger would enable efficient utilization of the resources of the units, the statement said. There will also be harmony in marketing and distribution network.

The Tata group is also said to be contemplating amalgamating airline companies Air Asia India and Vistara by 2024.

The share swap ratio under the merger plan is 17:10 for TRF (17 shares of Tata Steel for 10 shares of TRF), 67:10 for TSPL (67 shares of Tata Steel for 10 shares of TSPL), 33:10 for Tinplate (33 shares of Tata Steel for 10 shares of Tinplate), 79:10 for Tata Metalics (79 shares of Tata Steel for 10 shares of Tata Metallics).

Tata Steel holds a majority stake in all these subsidiaries. Tata Steel holds 74.91 percent stake in ‘Tata Steel Long Products Limited’. Apart from this, it has 74.96 percent stake in ‘The Tinplate Company of India Limited’, 60.03 percent in ‘Tata Metallics Limited’ and 95.01 percent in ‘The Indian Steel and Wire Products Limited’, while ‘Tata Steel Mining Limited’ and ‘S&S’ Both ‘Tea Mining Company Limited’ are its wholly owned subsidiaries.

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

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