NatSteel to buy 2 mills in Vietnam
By TNN |
Highlights
KOLKATA: Tata Steel’s wholly
owned subsidiary, NatSteel Asia Pte, has decided to acquire two steel rolling
mills in Vietnam, as part of the company’s thrust on regional
consolidation. Through two separate acquisitions, NatSteel will pick up 100%
equity in SSE Steel and another 70% stake in Vinausteel. The remaining 30% stake
in Vinausteel is held by Vietnam Steel Corporation.
The transaction is likely to be complete by June 2007. The two deals will give NatSteel access to some 4,30,000 tonne of finishing capacity in a growing steel market like Vietnam.“The total value of the deal is estimated to be around $41 million, subject to certain closing adjustments on the completion date,” Tata Steel said in a statement to the BSE. While SSE Steel has a capacity of 250,000 tonnes per annum, Vinausteel produces 180,000 tonnes per year.
SSE Steel has one of the most modern mills in Vietnam while Vinausteel is one of the best known brands in reinforcement bars. NatSteel currently operates a 100,000 tonnes per year wire rod and reinforcement bar mill in joint venture with VSC in Thai Nguyen , located some 70 km from Hanoi.
The acquisition highlights the company’s focus on de-integration strategy and will provide it with a larger footprint in the growing south east Asian region, including Vietnam, the statement added.
The transaction is likely to be complete by June 2007. The two deals will give NatSteel access to some 4,30,000 tonne of finishing capacity in a growing steel market like Vietnam.“The total value of the deal is estimated to be around $41 million, subject to certain closing adjustments on the completion date,” Tata Steel said in a statement to the BSE. While SSE Steel has a capacity of 250,000 tonnes per annum, Vinausteel produces 180,000 tonnes per year.
SSE Steel has one of the most modern mills in Vietnam while Vinausteel is one of the best known brands in reinforcement bars. NatSteel currently operates a 100,000 tonnes per year wire rod and reinforcement bar mill in joint venture with VSC in Thai Nguyen , located some 70 km from Hanoi.
The acquisition highlights the company’s focus on de-integration strategy and will provide it with a larger footprint in the growing south east Asian region, including Vietnam, the statement added.
KOLKATA: Tata Steel’s wholly owned subsidiary, NatSteel Asia Pte, has decided to acquire two steel rolling mills in Vietnam, as part of the company’s thrust on regional consolidation. Through two separate acquisitions, NatSteel will pick up 100% equity in SSE Steel and another 70% stake in Vinausteel. The remaining 30% stake in Vinausteel is held by Vietnam Steel Corporation.
The transaction is likely to be complete by June 2007. The two deals will give NatSteel access to some 4,30,000 tonne of finishing capacity in a growing steel market like Vietnam.“The total value of the deal is estimated to be around $41 million, subject to certain closing adjustments on the completion date,” Tata Steel said in a statement to the BSE. While SSE Steel has a capacity of 250,000 tonnes per annum, Vinausteel produces 180,000 tonnes per year.
SSE Steel has one of the most modern mills in Vietnam while Vinausteel is one of the best known brands in reinforcement bars. NatSteel currently operates a 100,000 tonnes per year wire rod and reinforcement bar mill in joint venture with VSC in Thai Nguyen , located some 70 km from Hanoi.
The acquisition highlights the company’s focus on de-integration strategy and will provide it with a larger footprint in the growing south east Asian region, including Vietnam, the statement added.
The transaction is likely to be complete by June 2007. The two deals will give NatSteel access to some 4,30,000 tonne of finishing capacity in a growing steel market like Vietnam.“The total value of the deal is estimated to be around $41 million, subject to certain closing adjustments on the completion date,” Tata Steel said in a statement to the BSE. While SSE Steel has a capacity of 250,000 tonnes per annum, Vinausteel produces 180,000 tonnes per year.
SSE Steel has one of the most modern mills in Vietnam while Vinausteel is one of the best known brands in reinforcement bars. NatSteel currently operates a 100,000 tonnes per year wire rod and reinforcement bar mill in joint venture with VSC in Thai Nguyen , located some 70 km from Hanoi.
The acquisition highlights the company’s focus on de-integration strategy and will provide it with a larger footprint in the growing south east Asian region, including Vietnam, the statement added.
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