BlueScope to exit Tata India JV

Australia-based BlueScope Steel Ltd. has entered into a binding agreement to sell its 50 percent stake in the Tata BlueScope Steel (TBSL) joint venture to its partner, Tata Steel Ltd. of Mumbai, India.

TBSL was established in 2005, and has grown into a prominent provider of coated and painted steel products in India, serving both building and construction markets, according to BlueScope, which also says the business has delivered consistent profitability and strong returns over time.

“We’re proud to have partnered with Tata Steel to build TBSL into the successful business it is today,” says BlueScope’s Managing Director Mark Vassella, who will be leaving that post early next year.

“This transaction recognizes the value created over two decades and delivers a strong financial outcome for BlueScope. It also strengthens our focus in executing a range of growth investments and initiatives across our strategic portfolio.”

BlueScope says it will receive net proceeds of AU$179 million ($117.4 million) after taxes and fees and an estimated net profit after tax on the sale of AU$70 million ($45.9 million). Completion of the transaction is subject to regulatory approvals in India.