AMSTERDAM – Tata Steel IJmuiden B.V., a wholly owned subsidiary of Tata Steel Limited, has signed a Share Purchase Agreement with Vattenfall Power Generation Netherlands B.V. to acquire full ownership of LAG Velsen B.V., a new entity that will house three key power plants in the Netherlands.
The deal, finalized on November 14, 2025, is valued at up to €140 million (approximately ₹1,450 crore). Upon completion, LAG Velsen B.V. will become an indirect wholly owned subsidiary of Tata Steel Limited.
The transaction involves the transfer of Vattenfall’s Velsen Power Plants—VN24, VN25, and IJmond01—which collectively generate 770 megawatts of electricity. These facilities convert process gases from Tata Steel IJmuiden’s steel production into electricity and steam under a tolling contract set to expire on December 31, 2025.
Vattenfall, citing strategic realignment, will not renew the tolling agreement. To ensure continuity of operations, Tata Steel IJmuiden will acquire the assets through LAG Velsen B.V., which is being incorporated specifically for this transaction.
The target entity has yet to commence operations, but the demerged assets posted a turnover of €110.8 million in calendar year 2024, primarily from tolling fees and ancillary electricity sales.
The acquisition is expected to close by January 1, 2026, securing Tata Steel Nederland’s energy infrastructure and reinforcing its commitment to sustainable industrial operations in Europe.