India’s largest steel giant, Tata Steel, has set its sights on the Indian iron ore assets of one of Britain’s largest independent steel trading companies - Stemcor, according to a media report.
The British firm has run into trouble as a result of a global slowdown in the steel industry and is in rescue talks with banks after de-faulting on more than $1 billion of loans.
The cash crunch has forced the company to offload some of its physical assets, including its iron ore mine in Orissa which could fetch an estimated $800 million.
According to ‘The Sunday Times’ sources, Tata Steel is keen to grab the iron ore to feed its Indian steel mills.
Stemcor has been granted a payment holiday by banks on its unpaid debt until September 16.
It presented a recovery plan last week that proposed shrinking the business.
Published 28 July 2013, 16:49 IST