REG - Tata Steel Limited - Acquisition of 100% equity stake in LAG Velsen B.V

TATA SteelAnnouncement

14/11/2025 18:15

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RNS Number : 6841H  Tata Steel Limited  14 November 2025

 

 

 

Ref: SEC/1170/2025-26

November 14, 2025

 

London Stock Exchange

London

 

Dear Madam, Sirs,

 

Sub: Acquisition of 100% equity stake in LAG Velsen B.V. by Tata Steel
IJmuiden B.V., an indirect wholly owned foreign subsidiary of Tata Steel
Limited

 

This is in reference to the abovementioned subject.

 

On November 14, 2025, Tata Steel IJmuiden B.V., an indirect wholly owned
foreign subsidiary of Tata Steel Limited ('Company') incorporated in the
Netherlands, Europe, executed a Share Purchase Agreement with Vattenfall Power
Generation Netherlands B.V., for acquisition of 100% equity stake in LAG
Velsen B.V., an entity to be incorporated by Vattenfall Power Generation
Netherlands B.V. for the purpose of this transaction, at an agreed purchase
price of up to €140 million (~₹1,450 crore). On completion of this
acquisition, LAG Velsen B.V. will become an indirect wholly owned foreign
subsidiary of the Company.

 

Further details of the said acquisition are enclosed herewith as Annexure.

 

This disclosure is being made pursuant to Regulation 30, 51, Schedule III and
other applicable provisions of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.

 

This is for your information and records.

 

 

Encl.: Annexure

 

 

Annexure

 SN   Particulars                                                                                                                                 Details
 1.   Name of the target entity, details in brief such as size, turnover etc.                                                                     Tata Steel IJmuiden B.V. ('TSIJ') is an indirect wholly owned foreign
                                                                                                                                                  subsidiary of Tata Steel Limited ('Company') incorporated in the Netherlands,
                                                                                                                                                  Europe.

                                                                                                                                                  The Velsen Power Plants (VN24, VN25 and IJmond01) of Vattenfall Power
                                                                                                                                                  Generation Netherlands B.V. ('Vattenfall'), processes and converts gases
                                                                                                                                                  arising from TSIJ's works into electricity. The electricity is supplied back
                                                                                                                                                  to TSIJ, under a tolling contract.

                                                                                                                                                  TSIJ has expressed interest in acquiring these Velsen Power Plants and hence,
                                                                                                                                                  it has been agreed that Vattenfall will demerge its Velsen Power Plants to a
                                                                                                                                                  newly incorporated entity and TSIJ would acquire equity stake in the new
                                                                                                                                                  entity.

                                                                                                                                                  Accordingly, LAG Velsen B.V. is proposed to be incorporated by Vattenfall for
                                                                                                                                                  the purpose of this transaction and the Velsen Power Plants having a total
                                                                                                                                                  electric capacity of 770 megawatts will be transferred to LAG Velsen B.V.

                                                                                                                                                  Financial Performance of the Target Entity: LAG Velsen B.V. is yet to commence
                                                                                                                                                  operations. Turnover (for demerged assets only) for CY 2024 is €110.8m. This
                                                                                                                                                  is predominantly the fee related to the tolling contract plus ancillary income
                                                                                                                                                  for any excess electricity sold to third parties.

 2.   Whether the acquisition would fall within         related party                                                                             No
      transaction(s) and whether the promoter/ promoter group/ group companies have
      any interest in                  the entity being acquired?
      If yes, nature of interest and details thereof and whether the same is done at
      "arm's length"
 3.   Industry to   which   the   entity   being acquired belongs                                                                                 Electricity production
 4.   Objects and impact of acquisition (including but not limited to, disclosure                                                                 With the acquisition of LAG Velsen B.V., TSIJ will acquire three power plants
      of                                 reasons for                                                                                              that are currently owned and operated by Vattenfall. The three power plants
      acquisition of target entity, if  its business is outside the main line of                                                                  are mainly fueled by process gases from TSIJ's steel-production activities.
      business of the listed entity)                                                                                                              The conversion of process gases into electricity and steam is governed by a
                                                                                                                                                  tolling contract that will expire by December 31, 2025.

                                                                                                                                                  As part of its corporate strategy, Vattenfall is not willing to extend the
                                                                                                                                                  tolling contract beyond its current expiry date of December 31, 2025.

                                                                                                                                                  Tata Steel Nederland's operations require the power plants for the continued
                                                                                                                                                  conversion of its process gases and are important for Tata Steel IJmuiden's
                                                                                                                                                  operations.

                                                                                                                                                  Accordingly, on November 14, 2025, TSIJ has executed a Share Purchase
                                                                                                                                                  Agreement with Vattenfall, for acquisition of 100% equity stake in LAG Velsen
                                                                                                                                                  B.V., an entity which will be incorporated for execution of the proposed
                                                                                                                                                  transaction, at an agreed purchase price of up to €140 million (~₹1,450
                                                                                                                                                  crore).
 5.   Brief details of any governmental or regulatory approvals required for the                                                                  Competition approval: Since certain quantitative merger-control thresholds are
      acquisition                                                                                                                                 met, the transaction requires approval from the Netherlands competition
                                                                                                                                                  regulator - The Netherlands Authority for Consumers and Markets (ACM).

                                                                                                                                                  Approval under the Dutch Electricity Act: Given the nature of the power plants
                                                                                                                                                  that will be acquired as a result of the transaction, the transaction is
                                                                                                                                                  subject to approval from the Netherlands Investment Screening Agency, the
                                                                                                                                                  Bureau Toetsing Investeringen (BTI)
 6.   Indicative time period for completion of the acquisition                                                                                    The transaction is envisaged to be completed by January 1, 2026
 7.   Consideration - whether cash         consideration or share swap or                                                                         TSIJ will pay a cash consideration of up to
      any other form and details of the same
€140 million (~₹1,450 crore) for the acquisition.
 8.   Cost of acquisition and/or the price at which the shares are acquired                                                                       The agreed purchase price is up to €140 million (~₹1,450 crore).
 9.   Percentage of shareholding / control   acquired and/or number of shares                                                                     TSIJ will acquire 100% shareholding in LAG
      acquired
Velsen B.V.
 10.  Brief background about the entity acquired in terms of products/line of                                                                     Please refer to the response provided against
      business acquired, date of incorporation, history of last 3 years turnover,
Point 1.
      country in which the acquired entity has presence and any other significant
      information (in brief).

 

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