To acquire the Bhushan Power and Steel, Tata Steel Ltd (TSL) has emerged as the highest bidder. As per the previous reports, Tata and JSW were the only two bidders for the company. Tata Steel Ltd is offering the bid of Rs35,000 crore while JSW Steel Ltd has come up with a bid of Rs 29,700 crore.
Bhushan Steel Ltd In India, Bhushan Steel Ltd is the largest manufacturer of auto-grade steel. It is identified as one of the 12 large corporate accounts by the RBI that accounted for 25% of the exposure to bad loans for the banking sector. Talking about Bhushan Steel Ltd, it has an outstanding debt of Rs50,000 crore, with bank dues standing at Rs44,000 crore.
The bankruptcy of Bhushan Power and Steel was admitted to court in June 2017. For acquiring Bhushan Power and Steel, there were 12 bidders initially. The list includes ArcelorMittal, Vedanta, AION Capital and Dubai-based businessman Shaikh Ayub.
How will this acquisition benefit Tata Steel?
As Bhushan Steel Ltd deals in flat-steel products so acquisition of both Bhushan Steel and Bhushan Power and Steel would make Tata Steel to capture 50% share for flat-steel products in Indian market. Flat-steel products are used in manufacturing of automobiles and consumer appliances.