Tata Steel unit buys Dutch power plants for €140m

On November 14, 2025, Tata Steel IJmuiden B.V. (TSIJ), an indirect wholly owned foreign subsidiary of Tata Steel Limited, executed a share purchase agreement to acquire a 100% equity stake in LAG Velsen B.V. from Vattenfall Power Generation Netherlands B.V. The agreed purchase price for this acquisition is up to €140 million, to be paid in cash. Upon completion, LAG Velsen B.V. will become an indirect wholly owned foreign subsidiary of the company.

The acquisition involves three Velsen power plants with a total electric capacity of 770 megawatts, which process and convert gases from TSIJ's steel production activities into electricity. This transaction is crucial as the existing tolling contract for these power plants expires on December 31, 2025, and Vattenfall is not extending it. The target entity, LAG Velsen B.V., is yet to commence operations; however, the turnover for the demerged assets for calendar year 2024 was €110.8m.

The transaction is subject to regulatory approvals from the Netherlands competition regulator, The Netherlands Authority for Consumers and Markets (ACM), and the Netherlands Investment Screening Agency, the Bureau Toetsing Investeringen (BTI). The acquisition is expected to be completed by January 1, 2026.