Tata Steel gains CCI nod for 23% TM International Logistics stake acquisition

The Competition Commission of India approved the acquisition of 23% equity shareholding of TM International Logistics Ltd. by Tata Steel Ltd. Tata Steel will hold 74% equity shareholding in TMILL, while NYK (Europe) B.V. will hold 26%. TM International Logistics Ltd. is a joint venture between Tata Steel, IQ Martrade, and NYK Europe.

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Quick Revision

Prelims-testable facts

01Tata Steel Ltd has acquired 23% equity shareholding in TM International Logistics Ltd from IQ Martrade Holding Und Management GmbH.
02The proposed combination pertains to the acquisition of the entire shareholding comprising 23% equity shares held by IQ Martrade in TM International Logistics Limited (TMILL).
03Tata Steel Ltd is a public limited listed entity engaged in integrated steel manufacturing operations, ranging from mining to steelmaking to further processing.
04TM International Logistics Ltd is a public limited company, presently a 51:23:26 joint venture between Tata Steel, IQ Martrade, and NYK Europe.
05Tata Steel will hold 74% equity shareholding in TM International Logistics Ltd, while NYK Europe will hold 26% equity shareholding.
06IQ Martrade will exit TM International Logistics Ltd as a shareholder following the acquisition.
07TM International Logistics Ltd primarily services Tata Steel's operational and transportation requirements across various segments of the logistics value chain.

Trap alerts

Most people think the acquisition is a horizontal merger, but actually it's an acquisition of a minority stake.
Most people think Tata Steel's holding in TM International Logistics Ltd will be 51% after the acquisition, but actually it will be 74%.
Most people think the CCI approval is for a horizontal merger, but actually it's for an acquisition of a minority stake.

Prelims Practice MCQs

Single facteasy

What percentage of equity shareholding of TM International Logistics Ltd. was acquired by Tata Steel Ltd.?

A.23%
B.51%
C.74%
D.26%

Tata Steel Ltd. acquired 23% equity shareholding of TM International Logistics Ltd.

Statement I & IIhard

Consider the following two statements: Statement-I: TM International Logistics Ltd. is a joint venture between Tata Steel, IQ Martrade and NYK Europe. Statement-II: TM International Logistics Ltd. was incorporated as a joint venture primarily to cater to the logistics and cargo transportation requirements of Tata Steel. Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
B.Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I
C.Statement-I is correct but Statement-II is incorrect
D.Statement-I is incorrect but Statement-II is correct

Statement 1 is correct as per fact 5. Statement 2 is also correct as per fact 6, which explains the reason for the incorporation of TM International Logistics Ltd. as a joint venture.

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