The Competition Commission of India (CCI) has approved Tata Steel’s proposed acquisition of an additional 23% equity stake in TM International Logistics Ltd (TMILL), paving the way for the steelmaker to become the majority owner of the logistics joint venture.
The transaction involves Tata Steel acquiring the entire 23% holding currently owned by IQ Martrade Holding Und Management GmbH, one of TMILL’s existing joint-venture partners. Following completion of the deal, IQ Martrade will exit the company.
Tata Steel currently holds 51% of TMILL. The acquisition will increase its ownership to 74%, while NYK (Europe) B.V. will retain the remaining 26% stake.
TMILL was established as a joint venture primarily to support Tata Steel’s logistics and cargo transportation requirements. Its operations cover several segments of the logistics value chain, including railway cargo transportation, port operations, cargo handling, freight forwarding and other value-added logistics services.
The transaction will give Tata Steel greater control over a logistics business closely integrated with its industrial and transportation requirements. Greater ownership could enable the steelmaker to strengthen coordination across its supply chain, particularly for the movement of raw materials and finished steel products.
For TMILL, the revised ownership structure will mark the end of IQ Martrade’s participation in the joint venture. NYK Europe will remain a strategic partner with a 26% shareholding.
The acquisition comes as Indian manufacturers increasingly focus on improving logistics efficiency and integrating transportation, warehousing, port handling and freight-forwarding operations. For a steel producer, efficient cargo movement is particularly important because of the large volumes of raw materials and finished products involved.
The CCI approval clears the competition-regulatory hurdle for the proposed combination, with the transaction still subject to completion of the applicable corporate and other requirements. The regulator said a detailed order would follow.
Once completed, Tata Steel’s increased ownership of TMILL will strengthen its position in the logistics venture and could provide greater scope for aligning TMILL’s operations with the company’s wider supply-chain and cargo transportation strategy.