Stocks & Shares

British metals tycoon to merge operations ahead of potential IPO

  • Metals tycoon Sanjeev Gupta to merge his family companies before filing an IPO
  • The merged companies will trade under the name “Liberty Steel Group”
  • Gupta’s GFG Holdings is the 17th largest producer of steel worldwide, according to the World Steel Association figures for 2018

British Indian commodities tycoon Sanjeev Gupta told Reuters on Tuesday that he intends to merge his family’s steel operations and trade under a single name, the Liberty Steel Group. Gupta also hinted at potentially listing the new outfit in the near future.

The business mogul told Reuters that he further plans to organize other private companies in his family’s portfolio and get them listed as well.

“Whether it’s the steel, aluminium or energy companies … all the companies will be made ready in terms of governance, reporting, and transparency, so they’ll be ready in every way to go for a listing as and when they want to,” Gupta said in an interview with Reuters.

CFG’s Liberty House currently holds all the steel assets before being incorporated by the close of 2019.

“The merger will take place by the end of the year and we’ll do a set of proforma numbers within Q1 next year,” said the executive chairman of the GFG Alliance, Gupta.

When asked about the potential listing markets, he cited London or anywhere else that the stakeholders would deem fit.

World Steel Association figures for 2018 placed Liberty Steel at position 17 worldwide when it comes to steel production. The company’s recent records convey an annual output of 18 million tons of steel.

Once the merger is concluded, the entire Liberty Steel Group will have operations in 10 countries supported by about 30,000 employees. Gupta will be pushing for a sustainable steel initiative that will spur the group to a carbon-neutral organization by 2030.

 The company’s sustainable steel initiative dubbed “GreenSteel” will partially enhance the building of electric arc furnaces (EAC), which are more efficient since they use recycled steel and consume less energy.

According to Gupta, their plan to use renewable energy and expand EAFs should be able to push them about 70% – 80% towards being a carbon-neutral company. The final piece of the puzzle will be to use Hydrogen to make virgin steel, Gupta added.

“Technically it’s already been proven, you can make steel with hydrogen, the only question is the economic viability,” the enthusiastic industrialist said.

Many may remember GFG Holdings as a company that grew organically through the strategic acquisition of smaller and struggling steel companies in Australia, the US, and Europe.

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