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Tata Steel to acquire Thai Co. for $400M
By agencies
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Thursday, 15 December 2005, 20:30 IST
MUMBAI: IndiaÂ’s largest private steel maker Tata Steel will acquire ThailandÂ’s largest steelmaker, Millennium Steel for about $400 million.
Tata Steel is likely to announce details of the acquisition this week. Tata Steel has been negotiating the acquisition deals with Millennium Steel to gain a foothold in Thailand. This deal would help Tata Steels to boost its exports to the rapidly growing Southeast Asian market.
The deal with MillenniumÂ’s largest shareholder, Siam Cementhai group, which owns close to 40 percent in the Thai company involves, purchasing of the Siam stake, followed by an open offer. Subsequently, Tata Steel is likely to make additional fresh investments. The total deal size, which includes the price for SiamÂ’s 40 percent, the open offer and the fund infusion into the company would be around $400 million.
Since the blast furnace route of making steel is dependent on iron ore, Tata Steel has been scouting for opportunities in steel plants like Millennium Steel, which make steel from steel scrap.