The country’s largest iron ore producer NMDC expects the proposed merger of secondary steel maker SIIL with itself to take place in January, after it gets the Corporate Affairs Ministry’s clearance.
“I am hopeful that the merger will take place by January as the hearing for it by the Ministry of Corporate Affair will take place on November 17,” NMDC Chairman Rana Som told PTI.
The hearing by the Ministry is fixed to assuage concerns, if any, of shareholders or any related party on the proposed merger. The company had earlier expected to close the merger deal in October.
“We are waiting for the merger and based on that and feasibility study for expansion and diversification of SIIL we will review our decision to invest Rs 1,200 crore into SILL,” Mr. Som added.
The government in May last year cleared the merger of NMDC with SIIL, which would get financial support and assured supply of iron ore from NMDC.
The proposed merger got the shareholders’ approval in June this year.
Meanwhile, the company is conducting a fresh financial viability study of SIIL for its proposed Rs 1,200-crore investment in the firm as globally sponge iron prices have slumped.