Tata Steel signs an agreement to acquire BPRL

Tata Steel has informed the bourses that it has signed an agreement worth Rs 900 crore in cash, to acquire Brahmani River Pellets, commonly abbreviated as BRPL. The target company is said too have a turnover of Rs 452 crore, and is operational largely in Odisha and Jaipur. It is in the business of manufacturing iron pellets for the steel industry.

The acquisition will provide synergies to Tata Steel for its metallic requirement; and will improve the feed mix for its Kalinganagar steel plant and Jamshedpur steel plant. While the deal is still subject to regulatory approvals, it will require approval from RBI and other regulatory bodies to restructure BRPL's balance sheet, including shareholders' loan and advances.

Tata Steel has executed definitive agreements to acquire 100 per cent equity shares of BRPL from Arya Mining and Trading Corp. Pvt.Ltd.,(AMTC) and other companies. Tata Steel plans to fund the acquisition from the internal cash flows of the company.

Meanwhile, the stock of Tata Steel on December 23, closed at Rs 390.75, down by 0.42 per cent.