Tata Steel cancels pact to acquire pellet maker Brahmani River Pellets Ltd

Hyderabad: Tata Steel on Wednesday announced that it has scrapped an agreement to acquire Brahmani River Pellets Ltd for Rs900 crore. Brahmani River Pellets is an Odisha-based iron ore pellet manufacturer.

In a communique to BSE, Tata Steel said: “The transaction has not been completed within the long stop date, due to non-fulfilment of certain conditions precedent by the sellers, obtaining the necessary regulatory approvals from the Reserve Bank of India, settlement of proceedings under FEMA by the Directorate of Enforcement, approval from the Income Tax authorities, etc.”

In December 2016, Tata Steel had entered into an agreement to acquire Brahmani River Pellets Ltd (BRPL) in all cash deal. “This has reference to the our release dated December 23, 2016, intimating about the execution of definitive agreement to acquire 100 per cent equity shares of BRPL from the selling entities being Aryan Mining Trading Corp Pvt Ltd and companies in the Moorgate Industries Group,” Tata Steel said.

As per the earlier agreement, the deal was subject to regulatory approvals and expected to close in four months. The company had said that it also needs approval from RBI and other regulatory bodies to restructure BRPL’s balance sheet, including shareholders loan and advances.