Tata Steel’s Netherlands Arm to Buy LAG Velsen for ₹14.5 Billion

Tata Steel Ltd. said its wholly owned Netherlands subsidiary, Tata Steel IJmuiden B.V., has signed a share purchase agreement with Vattenfall Power Generation Netherlands B.V. to acquire LAG Velsen B.V. for ₹14.5 Billion. The target entity is currently held by Vattenfall, and the move will allow the Tata Steel unit to continue receiving services from three power plants operated by the seller, the company told exchanges late Friday.

With this acquisition, the Netherlands subsidiary will take over the three plants, which mainly run on process gases generated from its steel-production activities. Electricity and steam produced from those gases are supplied under a tolling contract that expires on December 31, and Vattenfall has declined to extend it. The acquisition ensures continuity of operations once the contract ends, the company said.