Indian steelmaker
Tata Steel Ltd. has decided to place a bid for 79 percent controlling stake in South African Highveld Steel and Vanadium Corporation.
Highveld Steel was put on sale in October 2005 by Anglo American PLC, the controlling stakeholder.
Tata Steel has started a due diligence for the South African steel company.
Industry analysts estimate a price tag of between Rand 6 billion ($966 million) and Rand 10 billion ($1.6 billion).
Highveld Steel and Vanadium Corporation is South
Africa's second largest steel producer after Mittal Steel South
Africa and the world's top supplier of vanadium, used in the
production of special and alloy steel.