Tata Steel IJmuiden B.V., an indirect wholly owned subsidiary of Tata Steel Limited, has signed a Share Purchase Agreement to acquire 100% equity stake in LAG Velsen B.V. for up to €140 million (approximately Rs. 1,450 crore), according to a company statement released today.

LAG Velsen B.V. is a new entity that will be incorporated by Vattenfall Power Generation Netherlands B.V. specifically for this transaction. The entity will hold three power plants (VN24, VN25, and IJmond01) with a total electric capacity of 770 megawatts that currently process and convert gases from Tata Steel’s operations into electricity.

The acquisition comes as Vattenfall has indicated it will not extend the current tolling contract beyond its December 31, 2025 expiration date. These power plants are considered important for Tata Steel IJmuiden’s operations as they convert process gases from steel production.

The transaction requires approval from the Netherlands Authority for Consumers and Markets and the Netherlands Investment Screening Agency. Completion is expected by January 1, 2026.

The power plants generated a turnover of €110.8 million in 2024, primarily from fees related to the tolling contract and income from excess electricity sold to third parties.

Upon completion of the acquisition, LAG Velsen B.V. will become an indirect wholly owned foreign subsidiary of Tata Steel Limited, which is listed on the London Stock Exchange.

The disclosure was made in compliance with regulations of the Securities and Exchange Board of India.

Source: investing.com