New Delhi, India: The Competition Commission of India (CCI) has approved Tata Steel’s acquisition of a 23% equity stake in TM International Logistics Ltd. (TMILL), paving the way for the exit of existing joint venture partner IQ Martrade Holding Und Management GmbH from the company.
The transaction involves Tata Steel acquiring the entire 23% shareholding held by IQ Martrade in TMILL. Once the deal is completed, Tata Steel’s stake in the logistics company will increase to 74%, while NYK (Europe) B.V. will retain the remaining 26%. IQ Martrade will cease to be a shareholder.
Tata Steel is a listed public company engaged in integrated steel manufacturing, with operations spanning mining, steelmaking and further processing. Its shares are listed on the Bombay Stock Exchange and the National Stock Exchange.
TMILL was established as a joint venture between Tata Steel, IQ Martrade and NYK Europe, with the company initially set up to address Tata Steel’s logistics and cargo transportation requirements. Its existing operations cover several areas of the logistics chain.
These include railway cargo transportation, port operations and cargo handling, freight forwarding and other value-added logistics services.
The CCI’s approval changes the ownership structure of TMILL, with Tata Steel becoming the majority shareholder with a 74% holding following completion of the proposed transaction.
The approval comes as Tata Steel continues to operate across an integrated manufacturing chain, while TMILL provides logistics services supporting the movement of cargo and materials associated with its operations.
The CCI release did not provide details on the financial value of the proposed share acquisition or the expected completion date of the transaction.
Source: This article is based on an official press release issued by the Press Information Bureau, Competition Commission of India
Press Release: Press Information Bureau
