SECTOR
Tata steel’s arm to acquire 100% equity stake in LAG Velsen B.V.
Nov-15-2025

Tata steel’s indirect wholly owned foreign subsidiary -- Tata Steel I Jmuiden B.V. (TSIJ), Netherlands, Europe, has executed a share purchase agreement with Vattenfall Power Generation Netherlands B.V. (Vattenfall), for acquisition of 100% equity stake in LAG Velsen B.V., an entity to be incorporated by Vattenfall for the purpose of this transaction, at an agreed purchase price of up to euro 140 million (around Rs 1,450 crore). On completion of this acquisition, LAG Velsen B.V. will become an indirect wholly owned foreign subsidiary of the company. The transaction is envisaged to be completed by January 1, 2026.

With the acquisition of LAG Velsen B.V., TSIJ will acquire three power plants that are currently owned and operated by Vattenfall. The three power plants are mainly fueled by process gases from TSIJ’s steel-production activities. 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 TSIJ’ operations. 

Tata Steel, the flagship company of the Tata group, is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 company.

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