Tata Steel to Acquire Velsen Power Plants in €140 Million Deal

Tata Steel Limited has announced a major strategic acquisition aimed at securing long-term power requirements for its Netherlands operations. In a regulatory filing under **Regulation 30 of SEBI LODR**, the company disclosed that its indirect wholly owned subsidiary, **Tata Steel IJmuiden B.V. (TSIJ)**, has entered into a Share Purchase Agreement on **November 14, 2025**, with **Vattenfall Power Generation Netherlands B.V.** for acquiring a 100% stake in **LAG Velsen B.V.** LAG Velsen B.V. is a **newly incorporated entity** that will house the **Velsen Power Plants (VN24, VN25, IJmond01)** with a combined generation capacity of **770 MW**. These facilities convert process gases from TSIJ’s steelmaking operations into electricity and currently function under a tolling arrangement with Tata Steel. The acquisition will be executed for a **cash consideration of up to €140 million (₹1,450 crore)**. The move comes after Vattenfall informed Tata Steel of its decision not to extend the existing tolling agreement beyond **December 31, 2025**, making ownership of the power assets a critical operational requirement for the steelmaker. According to the filing, the deal is subject to multiple regulatory approvals, including clearances from the **Netherlands Authority for Consumers and Markets (ACM)**, the **Dutch Investment Screening Agency (BTI)**, and compliance with the **Dutch Electricity Act**. Completion of the transaction is targeted for **January 1, 2026**, subject to timely approvals. The demerged assets reported a turnover of **€110.8 million in calendar year 2024**, largely driven by tolling fees and surplus electricity sales. Tata Steel stated that the acquisition reinforces its commitment to operational continuity and energy security at its IJmuiden steel complex. The disclosure was signed by **Parvatheesam Kanchinadham**, Company Secretary and Chief Legal Officer of Tata Steel Limited.