Tata Steel to buy 23% TMILL stake for US$45.5M
What's the deal? Tata SteelDealroom has a profile for this one. Try Dealroom → has agreed to buy a 23% stake in TM International LogisticsDealroom has a profile for this one. Try Dealroom → Ltd (TMILL) from Germany's Martrade for US$45.5M, ending a 25-year partnership. Once the deal closes, Tata Steel will own 74% of TMILL, with Japan's NYKDealroom has a profile for this one. Try Dealroom → holding the rest.
Why it matters: TMILL handles shipping of raw materials and steel products — a core function for Tata Steel's operations.
What's the endgame? The move fits Tata Steel's global growth plans and aims to improve how efficiently it moves goods worldwide.
By the numbers: Tata Steel posted net profit up 19% to US$323.9M in the latest quarter, with revenue of US$8.2B. It is also investing US$4.6B to expand its Odisha plant by 4.8 million tons, strengthening its long product lineup.
The signal: By raising its stake to a controlling 74%, Tata Steel is bringing more of its logistics chain in house — a bet on tighter control over the movement of steel and raw materials as it scales globally.
Read more: NewsBytes
Image credit: Andrew Kudrin
