Tata Steel ties up debt to buy Bhushan Steel
To acquire Bhushan Steel Ltd Tata Steel has tied up a debt of Rs 17,000 crore. It is also planning to pump Rs 18,000 crore as equity for the Rs 35,200 crore asset. Currently it is awaiting all regulatory approvals to be done.
The Bhushan Steel lenders have a 12% stake in the company and there are around 5,000 employees would be taken on board, as per the resolution plan given by TATA steel. The Officials also expressed concern over the delay in the entire process and have also added that it may lead to governance issues if further delayed.
This acquisition will help to tighten its grip on the eastern part of India and also would help to bag the title of ‘India’s largest steel maker’ from JSW Steel.