Oct. 13, 2017 - Tata Steel announced it has terminated the process to acquire Odisha-based iron ore pellet manufacturer Brahmani River Pellets Limited.
"The transaction has not been completed within the long stop date, due to non-fulfilment of certain conditions precedent by the sellers, obtaining the necessary regulatory approvals from the Reserve Bank of India, settlement of proceedings under FEMA by the Directorate of Enforcement, approval from the Income Tax authorities, etc," Tata Steel said in a filing to BSE.
Tata Steel in last December had released the announcement of signing an agreement to acquire Brahmani River Pellets Ltd (BRPL) for Rs 900 crore in an all-cash deal.
Tata Steel had said the deal, subject to regulatory approvals, was expected to close in four months. The company had said that it also needs approval from RBI and other regulatory bodies to restructure BRPL’s balance sheet, including shareholders loan and advances.
BRPL was incorporated on August 24, 2006 and is engaged in the business of acquisition and beneficiation of iron ore and the manufacture and sale of iron ore pellets. Pellets are used as agglomerates in the iron making process. The company was originally established by Moorgate Industries Group (MIG), which continues to hold a significant stake in BRPL through its shareholding in AMTC.