Indian Ferrochrome Joint Venture Merges With Sponsor
08/21/2015 - The board of directors at India's VISA Steel Ltd. has approved a deal in which the company will fold a joint venture business with China's Baosteel Resources Co. Ltd. into itself, the company said in a press release.
The joint venture, VISA Bao Ltd., produces ferrochrome at a plant in Odisha. VISA has a 65-percent stake in the business; Bao held a 35-percent stake. As a result of the deal, Baosteel will now hold a 5-percent share in VISA Steel.
"The amalgamation of VISA Bao with VISA Steel will make VISA Steel one of the largest ferrochrome producers in India. The integration will improve the operational and cost-efficiency of the ferrochrome business," said Vishal Agarwal, VISA Steel's vice chairman, in a statement.
Meanwhile, the company is in the process of transferring its special steel business, which includes a blast furnace, meltshop, refining facilities, and a bar and wire rod mill, to a subsidiary, VISA Special Steel Ltd.
The company said the move will "create better focus" and make the business more appealing to investors.
"The amalgamation of VISA Bao with VISA Steel will make VISA Steel one of the largest ferrochrome producers in India. The integration will improve the operational and cost-efficiency of the ferrochrome business," said Vishal Agarwal, VISA Steel's vice chairman, in a statement.
Meanwhile, the company is in the process of transferring its special steel business, which includes a blast furnace, meltshop, refining facilities, and a bar and wire rod mill, to a subsidiary, VISA Special Steel Ltd.
The company said the move will "create better focus" and make the business more appealing to investors.
