Tata Steel Ltd's planned acquisition of bankrupt Bhushan Steel Ltd has moved a step closer as the latter's creditors have approved its resolution plan for the second time this month.
The Tata group company said in a stock-exchange filing on Friday that Bhushan Steel's creditors have selected it for the acquisition. The decision has been sent for approvals from the National Company Law Tribunal (NCLT) and the Competition Commission of India.
The development comes days after Bhushan Steel's employees raised objections to the bid.
On March 7, Tata Steel had emerged as the highest bidder for Bhushan Steel with a proposal to pay Rs 35,000 crore, outbidding JSW Steel Ltd's Rs 29,000 crore offer.
However, employees of Bhushan Steel moved the NCLT objecting to Tata Steel's bid. The NCLT had subsequently asked Tata Steel to consider the objections.
Tata Steel has now accepted the letter of intent for Bhushan Steel, it said.
Odisha-based Bhushan Steel is the largest manufacturer of auto-grade steel in India and owes its creditors about Rs 48,100 crore. It is one of several companies in bankruptcy courts after failing to repay debt. Essar Steel Ltd and Binani Cements are among the others.
Tata Steel had an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on 31 March 2017. The company's consolidated revenue, which includes its international business, was about $18 billion for 2016-17.