Big steel companies buying stressed assets will boost consolidation
The National Company Law Tribunal (NCLT) in May this year approved Tata Steel's resolution plan for debt ridden Bhushan Steel under the Insolvency and Bankruptcy Code (IBC). The NCLT also gave its approval to the also consortium of JSW Steel and AION Investments Private II Ltd to acquire cash-strapped Monnet Ispat and Energy last month.
Stressed steel asset acquisitions by large operating companies will lead to an increase in the sector consolidation, particularly flat steel market, a report said. Image source: Reuters