Indian steelmaker Tata Steel Limited has announced that it has signed a definitive agreement to acquire 100 percent equity shares of India-based iron ore pelletisation complex Brahmani River Pellets Limited from Moorgate Industries, which was formed due to a demerger from London-based Stemcor, the world's largest independent steel trader, as part of a UK court-approved restructuring in 2015. The transaction with a value of INR 9 billion ($132.69 million) is subject to completion of certain condition precedents including regulatory approvals.
Brahmani River Pellets owns a pellet plant in Jajpur in the state of Odisha with an annual capacity of four million mt and an iron ore beneficiation plant in Barbil, Odisha, which has an annual capacity of 4.7 million mt.
Tata Steel stated that the location of Brahmani River Pellets is very strategic to the company’s new steel unit in Kalinganagar, Odisha, and the transaction will improve the supply of raw material and reduce the costs at its Kalinganagar operations.