Tata Steel, through its indirect subsidiary Tata Steel IJmuiden B.V., will acquire 100% equity stake in LAG Velsen B.V. from Vattenfall for up to €140 million (~₹1,450 crore). The acquisition secures the power supply for Tata Steel Nederland’s IJmuiden operations, converting process gases into electricity, and ensuring continued operations. The deal is expected to close by January 1, 2026.
Strategic Acquisition of LAG Velsen B.V.
Tata Steel IJmuiden B.V. (TSIJ), an indirect, wholly-owned foreign subsidiary of Tata Steel Limited, has executed a Share Purchase Agreement with Vattenfall Power Generation Netherlands B.V. to acquire 100% equity stake in LAG Velsen B.V., an entity to be incorporated by Vattenfall. The acquisition is valued at up to €140 million (~₹1,450 crore).
Rationale for the Acquisition
The acquisition is aimed at securing a reliable power supply for Tata Steel Nederland’s IJmuiden operations. LAG Velsen B.V. will house three power plants currently owned and operated by Vattenfall. These plants convert gases from TSIJ’s steel production into electricity, essential for ongoing operations.
Details of the Target Entity
LAG Velsen B.V. is being incorporated by Vattenfall specifically for this transaction. It will encompass the Velsen Power Plants (VN24, VN25, and IJmond01), which have a total electric capacity of 770 megawatts. Turnover for these assets in CY 2024 is projected at €110.8m.
Terms and Approvals
TSIJ will pay a cash consideration of up to €140 million (~₹1,450 crore) for 100% shareholding in LAG Velsen B.V. The transaction is subject to regulatory approvals, including those from The Netherlands Authority for Consumers and Markets (ACM) and under the Dutch Electricity Act. The expected completion date is January 1, 2026.
Source: BSE