(Bloomberg) -- Creditors for debt-laden Bhushan Steel Ltd. have picked Tata Steel Ltd. as the successful bidder for the assets in India’s insolvency resolution process.
The lenders on Thursday declared the steelmaker’s bid successful, subject to obtaining necessary approvals, including from the resolution professional, the company law tribunal that is overseeing the process, and the Competition Commission of India, Tata Steel said in an exchange filing on Friday.
A new Indian bankruptcy law designed to clear out distressed assets has set off a contest for more than $26 billion of steel assets, spurring interest from foreign and domestic metals giants.
The acquisition will help Tata Steel accelerate its plan to double capacity to 26 million tons in five years. Bhushan Steel can produce 5.6 million tons of the metal a year.