Tata Steel , one of India's leading steel manufacturers, has made a strategic move to bolster its energy infrastructure capabilities. The company's Dutch subsidiary, Tata Steel IJmuiden B.V., has entered into an agreement to acquire a 100% stake in Lag Velsen B.V. for up to €140 million (approximately ₹1,450.00 crore).

Key Highlights of the Acquisition

Strategic Importance

The acquisition is of significant strategic importance for Tata Steel's operations in the Netherlands. The three power plants, currently owned and operated by Vattenfall, are primarily fueled by process gases from Tata Steel IJmuiden's steel-production activities. This acquisition ensures the continued conversion of process gases into electricity and steam, which is crucial for Tata Steel IJmuiden's operations.

Background and Rationale

The current tolling contract between Tata Steel IJmuiden and Vattenfall for the conversion of process gases into electricity is set to expire on December 31, 2025. With Vattenfall unwilling to extend this contract beyond the expiry date, Tata Steel has taken proactive steps to secure its energy needs by acquiring these power plants.

Transaction Details

The Share Purchase Agreement was executed on November 14, 2025. Upon completion of this acquisition, Lag Velsen B.V. will become an indirect wholly-owned foreign subsidiary of Tata Steel Limited.

Regulatory Approvals

The transaction is subject to two key regulatory approvals:

1. Competition Approval: The deal requires approval from the Netherlands Authority for Consumers and Markets (ACM) due to meeting certain quantitative merger-control thresholds.
2. Dutch Electricity Act Approval: Given the nature of the power plants involved, the transaction needs approval from the Netherlands Investment Screening Agency, the Bureau Toetsing Investeringen (BTI).

Timeline

The transaction is expected to be completed by January 1, 2026, subject to necessary regulatory approvals.

This strategic acquisition underscores Tata Steel's commitment to securing its energy infrastructure and maintaining operational efficiency in its European operations. By bringing these power plants under its control, Tata Steel aims to ensure a stable and reliable energy supply for its steel production activities in the Netherlands.

Tata Steel , one of India's leading steel manufacturers, is expected to report a remarkable turnaround in its financial performance for the September quarter. According to brokerage estimates, the company is projected to see a significant rebound in profitability, with profit after tax (PAT) anticipated to surge by nearly 270% compared to the same period last year.

Key Financial Highlights

Driving Factors Behind the Rebound

The projected improvement in Tata Steel's financial performance can be attributed to several factors:

1. Lower Input Costs: A significant reduction in input costs, particularly coking coal, has helped boost profitability across operations.

2. Higher Domestic Volumes: The company's Indian operations are expected to show improvement, with standalone volumes projected to rise by 9% year-on-year to 5.60 million tonnes.

3. Domestic Demand Recovery: The volume growth is supported by a recovery in domestic demand following a monsoon-affected first quarter.

Challenges and Considerations

Despite the positive outlook, Tata Steel faces some challenges:

• Steel Price Pressure: Steel realisations are estimated to decline by 4.50% quarter-on-quarter and 1.60% year-on-year due to seasonal price corrections.
• European Operations: The company's European segment continues to face difficulties, with the UK unit expected to report losses of $151.00 per tonne.

Segment-wise Performance

India Operations

• Standalone volumes expected to reach 5.60 million tonnes
• EBITDA per tonne projected at Rs 14,407.00, down 3.60% sequentially but up 20% year-on-year

European Operations

• UK unit facing challenges with projected losses
• Netherlands operations showing signs of improvement with an expected EBITDA of $63.00 per tonne

Analyst Perspectives

Analysts emphasize that volume recovery in India and cost efficiency will be the key drivers of earnings growth for Tata Steel. The lower coking coal costs are expected to provide support across the company's operations, helping to offset the impact of weak steel prices.

As Tata Steel navigates through these market dynamics, investors and industry observers will be keenly watching how the company leverages its cost efficiencies and domestic market strength to maintain its growth trajectory in the face of global steel market challenges.