Tata said it received word of the decision following a meeting of Bhushan’s creditors’ committee on Tuesday. Bhushan is one of a dozen debt-laden Indian companies forced into insolvency proceedings by India’s central bank.
Tata’s offer bested bids submitted by JSW Steel and an employee group.
Tata did not reveal the size of the offer. However, Indian business daily Mint reported that it offered the equivalent of about US$5.9 billion, plus the equivalent of US$184.2 million to operational creditors.
Bhushan has an annual capacity of about 5.6 million tons. Acquiring a controlling stake in Bhushan gives Tata Steel an edge in India’s automotive steel market, the Reuters news service reported.