The division bench, comprising judicial member KR Saji Kumar and technical member Sanjiv Dutt, allowed the merger application, observing that the scheme appeared fair, reasonable, and in compliance with all legal provisions. They also observed that it was not contrary to public interest or policy.
Before the tribunal’s approval, Tata Steel, through senior advocate Zal Andhyarujina and law firm Argus Partners, argued that the amalgamation would create a combined entity offering value-added products under Tata Steel. “This ‘One-Tata Steel’ approach would improve the shareholder value of the merged entity,” argued the company.
“This restructuring will simplify the group structure by eliminating multiple companies in similar businesses,” the company argued. “The amalgamation will consolidate Indian Steel & Wire Products into Tata Steel, resulting in focused growth, operational efficiencies, and enhanced business synergies.”
Tata Steel's counsel also argued that the new corporate holding structure would enhance the agility of the merged entity's business ecosystem.
In 2022, the Tata Group decided to consolidate its metal and resource businesses into a single entity, initiating the process of merging its six subsidiaries. These include three listed companies, Tata Metaliks Ltd, Tata Steel Long Products Ltd, and The Tinplate Company of India Ltd, and three unlisted companies, Indian Steel & Wire Products Ltd, Tata Steel Mining Ltd, and S & T Mining Company Ltd.
In line with the group's 5S strategy—simplification, synergy, scale, sustainability, and speed—the amalgamation aims to simplify the group holding structure, enhance agility for quicker decision-making, and eliminate administrative duplications, thereby reducing the costs of maintaining separate entities.
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