Chinese steelmaker Baosteel Group Corporation is picking up 5 per cent stake in Kolkata-based steel manufacturing company Visa Steel Ltd, according to a stock market disclosure.
This involves a merger between Visa Bao Ltd with Visa Steel Ltd. Visa Bao was formed in 2008 as a joint venture between Visa Steel and Baosteel for building a ferro chrome plant in Odisha. In the JV, Visa Steel holds a 65 per cent stake and the remaining 35 per cent is held by Baosteel.
“The amalgamation will make Visa Steel one of the largest ferro chrome producers in India. The integration will improve the operational and cost efficiency of the ferro chrome business,” said Vishal Agarwal, vice-chairman and managing director of Visa Steel.
Founded in 1994, Visa Steel is engaged into special steel, ferro chrome and metallurgical coke business in India. It has pig iron, ferro chrome rolling and sponge iron plants.
In 2012, the company had separately joined hands with SunCoke Energy for a heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha.
Visa Steel's scrip was trading at Rs 14.20 each, down 6.89 per cent on BSE in a weak Mumbai market on Monday at 2.58 PM.