NatSteel will acquire SSE Steel, which operates a 250,000 TPA bar / wire rod mill. It will purchase a 70% stake in Vinausteel, which produces 180,000 TPA reinforcing bars
Tata Steel Ltd. announced on Thursday that as part of it's regional consolidation drive, its 100% subsidiary NatSteel Asia Pte. Ltd. has agreed to acquire controlling stake in two rolling mills in Vietnam.

NatSteel will acquire a 100% stake in SSE Steel Ltd., which operates a 250,000 tons per annum (TPA) bar/wire rod mill. It will purchase a 70% stake in Vinausteel Ltd., which produces 180,000 TPA reinforcing bars. The remaining 30% equity in Vinausteel is held by Vietnam Steel Corporation.

The acquisition will result in an addition of 430,000 TPA finishing capacity, Tata Steel said. The enterprise value for the two acquisition is around US$41mn, subject to certain closing adjustments on the completion date. This transaction is likely to be completed by June, according to Tata Steel.

SSE Steel has one of the most modern rolling mills in Vietnam and the Vinausteel brand is one of the best known brands in Vietnam for reinforcement bars, Tata Steel said. The acquisition of the two mills will allow the company to complement, strengthen and expand its current presence in Vietnam, it added.

Tata Steel presently operates a 100,000 TPA reinforcing bar / wire rod mill in a joint venture with Vietnam Steel Corporation at Thai Nguyen. This mill is located about 70 km north of Hanoi, the capital of Vietnam.

The acquisition demonstrates the company's focus on de-integration strategy and will provide the company with larger footprint in the growing South East Asian region, including Vietnam, Tata Steel said.

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