Tata Iron and Steel Company Ltd has acquired the steel business of Singpore-based NatSteel Ltd for Rs 1,313 crore (Rs 13.13 billion).

Under the terms of agreement reached between the two on Monday, NatSteel will spin off its entire steel business into a wholly owned subsidiary NatSteel Asia Pte Ltd.

Subsequently, Tata Steel will acquire 100 per cent stake in the new entity, the company informed the stock exchange in Mumbai.

The transaction is expected to close in five to six months after obtaining all regulatory approvals, Tata Steel said.