New Delhi: The Competition Commission of India (CCI) has approved two separate proposals involving major players in the steel and financial services sectors, clearing Tata Steel Ltd’s move to acquire sole control of Tata BlueScope Steel Pvt Ltd, and a Blackstone-backed entity’s proposed acquisition of warrants in Federal Bank Ltd.
The anti-trust regulator has approved Tata Steel’s proposal to acquire the remaining 50% equity in Tata BlueScope Steel from BlueScope Steel Asia Holdings Pty Ltd. With this, Tata Steel will move from joint control to sole control of the downstream coated steel manufacturer.
Tata BlueScope Steel is currently a 50:50 joint venture between Tata Steel, through its wholly owned subsidiary Tata Steel Downstream Products Ltd (TSDPL), and BlueScope Steel Ltd of Australia, through its subsidiary BlueScope Steel Asia Holdings. The company operates in the coated steel segment, offering surface-coated steel products, including galvanized products and pre-painted or colour-coated steel, supplied as coils and finished products used in roofing, walling and cladding applications.
Federal Bank
Separately, the CCI has also approved the proposed acquisition of certain warrants of Federal Bank by Asia II Topco XIII, an entity controlled by funds advised or managed by affiliates of global private equity major Blackstone Inc.
Under the proposed transaction, Asia II Topco XIII will acquire warrants that carry the right to subscribe to fully paid-up equity shares of Federal Bank. Upon full exercise of these warrants, the acquirer will hold up to 9.99% of the paid-up share capital of the bank on a fully diluted basis. The deal also provides the acquirer the right to nominate a director to Federal Bank’s board, subject to maintaining a minimum shareholding of 5%.