Krosaki Harima Corp., a major refractory material maker, has said it will turn its biggest Indian rival, Tata Refractories Ltd., into a subsidiary in a deal that will create the fourth-largest refractory manufacturer in the world.
Krosaki, based in Kitakyushu, will purchase 51 percent of the outstanding shares in Tata Refractories from Tata Steel Ltd., a major Indian steelmaker that currently owns a 77.5 percent stake in the unit, for 10.45 billion yen at the end of May.
Combining the two companies' estimated sales in the year to March 31, the deal will create the world's fourth-largest refractory material manufacturer, with sales of 112.3 billion yen, according to Krosaki officials.
Krosaki decided on its largest-ever investment as demand for refractory materials, which retain strength at high temperatures, has continued to grow among steelmakers worldwide.