India's Tata Steel Ltd. is in talks to buy a controlling stake in Millennium Steel PCL from Cement Thai Holding, a unit of Siam Cement PCL, the Nation reports, quoting an unnamed source from Millennium Steel.

The source said Tata wants to buy out the entire 39.9% stake in Millennium Steel currently owned by Cement Thai. Based on Millennium Steel's closing price Monday at THB1.22 a share, the deal could be worth around THB3 billion, according to the report.

The negotiation should be concluded soon, the source said.

The transaction, if it takes place, will be in line with Siam Cement's policy to sell its non-core business. Tata will also benefit from the expected increase in domestic steel demand.

The report did not cite any officials from Tata Steel or Cement Thai Holding.