Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Japanese steel firms Nippon Steel and Sumitomo Metals are likely to retain Tata Steel as partner for India, post their proposed merger. Nippon Steel has a tie-up with Tatas and Sumitomo Metals has a partnership with Bhushan Steel. Industry sources said that the new entity, formed out of Nippon-Sumitomo’s existing businesses, will keep only one firm as its India ally and the balance is tilted towards Nippon’s long-standing partner Tata Steel rather than Sumitomo Metals’ Bhushan Steel, which has a marketing and technology tie-up with the Japanese firm.
“There could be conflict of interests, if they continue with both the firms and that is not Japanese way of doing business,” a source said, adding, “Obviously, Tata Steel has an edge as it is a bigger brand in global arena.”
