Tata Steel's European Arm to Acquire Vattenfall Power Generation Netherlands for ₹1,450 Crore

Tata Steel Limited has announced a strategic overseas acquisition through its indirect subsidiary, Tata Steel IJmuiden B.V.  

As per the exchange filings, the company has entered into an agreement to acquire 100% equity in LAG Velsen B.V., a newly created entity that will hold three key power plants currently operated by Vattenfall Power Generation Netherlands B.V. 

Key Development 

Under the Share Purchase Agreement dated November 14, 2025, Tata Steel IJmuiden will acquire LAG Velsen B.V. for up to €140 million (around ₹1,450 crore). The entity will own three Velsen power plants with a combined capacity of 770 MW.  

These plants, which run on process gases from Tata Steel Nederland’s steelmaking operations, currently operate under a tolling contract expiring on December 31, 2025. Since Vattenfall has no intent to renew the arrangement, the acquisition ensures uninterrupted access to electricity and steam for the IJmuiden facility. 

Statements and Financial Details 

The filing states that LAG Velsen B.V. will be incorporated specifically for the acquisition and will assume ownership of the Velsen plants before the transaction closes. The demerged assets recorded a turnover of €110.8 million in CY 2024, supported by tolling income and electricity sales.  

After completion, LAG Velsen B.V. will become an indirect wholly owned foreign subsidiary of Tata Steel. The deal requires regulatory approvals from the Netherlands Authority for Consumers and Markets (ACM) and the Netherlands Investment Screening Agency (BTI). Completion is targeted by January 1, 2026, with the full consideration paid in cash. 

Read More: Tata Steel Acquires Remaining 50% Stake in Tata BlueScope Steel for ₹1,100 Crore! 

Tata Steel Share Price Performance  

As of November 17, 2025, at 10:08 AM, the Tata Steel share price is trading at ₹173.10 per share, reflecting a decline of 0.67% from the previous day's closing price. 

Conclusion 

The acquisition represents a critical move to secure long-term energy stability for Tata Steel’s European operations. By taking direct control of the 770 MW Velsen power plants, the company safeguards operational continuity once the current tolling contract ends and strengthens its ability to manage energy-intensive steelmaking processes at IJmuiden. This step reinforces Tata Steel’s broader strategic efforts to stabilise inputs, strengthen resilience, and position its European portfolio for future transition and growth. 

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