After snapping up Anglo-Dutch steelmaker Corus Group Plc in February for $11 billion, India Inc’s biggest buyout, the steelmaker has joined the race to acquire Stelco, the last Canadian steel giant that is up for grabs.
If the Tatas pull it off, the Indian steelmaker, which is the fifth largest in the world with a steel-making capacity of 26 million tonnes, will gain a strong foothold in the North American market where it does not have a production base as yet.
Hamilton-based Stelco makes about 3.7 million tonnes of steel a year, including sheet steel, which is used in auto and appliance manufacturing.
Stelco, which came out of bankruptcy in 2006, said it was considering a sale after its last domestic competitor was gobbled up in May.
A Tata Steel spokesperson refused to confirm its interest in Stelco, but said the company would continue to look at opportunities as and when they arose.
“There is nothing at the finalisation stage that warrants our comment,” he added.
Russia’s Severstal and Evraz could be other potential bidders for Stelco, which in the past also attracted interest from the Jindals.