Tata Steel Ltd.

Tata Steel has sold 51% stake in group company Tata Refractories (TRL) to Nippon Steel's associate Krosaki Harima Corporation (KHC) and inducted the Japanese firm as a strategic partner. The 51% stake deal is valued at Rs 576.3 crore, going by the TRL valuation at Rs 1,130 crore. Tata Steel would continue to hold 26.46% stake in the TRL -- the largest domestic refractories manufacturer.

Earlier, on April 21, Tata Steel (TSL) and Krosaki Harima Corporation had signed definitive agreement to induct KHC as a strategic partner in Tata Refractories. As per the agreement, KHC would acquire 51% stake of TSL’s current 77.46% stake in TRL. KHC is an associate company of Nippon Steel Corporation of Japan. The transaction is subject to approval of relevant regulatory authorities in India and Japan.

KHC is a leading refractory player with global presence and advanced technology. With this association Tata Steel believes that TRL will be able to access latest technology and diversify its product offering. It will also provide TRL an opportunity to easily access markets outside India.