India's government has approved the sale, which is part of a privatization plan to raise funds for the country's development
The Indian government has approved the sale of steel producer Neelanchal Nigam Ltd. to Tata Steel Long Products Ltd.
Tata Steel offered the highest price for a 93.7% stake in Neelanchal Nigam, which is located in the eastern state of Orissa.
The deal is part of a privatization plan under which Indian authorities are raising the funds needed to meet the country's development goals, MarketWatch reported.
For example, late last year the flagship carrier Air India Ltd. was sold to Tata Sons for more than $2 billion. In addition, the government is now in the process of selling state-owned oil refiner Bharat Petroleum Corp.
Tata Steel said in a separate press release that it will finance the deal with available funds and loans.
The Tata Steel Group is among the world's largest steel producers with an annual production of 34 million tons. The group had a consolidated turnover of $21.06 billion for the last fiscal year ended March 2021.
