JSW Steel Limited and JFE Steel Corporation JV to acquire 100% equity interest in thyssenkrupp Electrical Steel India Private Limited

Jsquare Electrical Steel Nashik Private Limited, a wholly owned subsidiary of JSW JFE Electrical Steel Private Limited ("J2ES"), a 50:50 joint venture between JSW Steel Limited (the "Company") and JFE Steel Corporation ("JFE"), has entered into a share purchase agreement to acquire 100% of equity interest in thyssenkrupp Electrical Steel India Private Limited ("tkES India"), and the Company has entered into other agreements including for licensing/transfer of associated technology package from thyssenkrupp group (together, the "Transaction"). The total purchase consideration for the Transaction is INR 4,051.40 crore, subject to closing adjustments.

tkES India is one of the first manufacturers of grain-oriented electrical steel ("GOES") in India with its facility located in Nashik, Maharashtra. The acquisition provides the Company with access to cutting-edge technology thereby aligning with its strategy of enhancing its value-added portfolio.

In February 2024, JFE Steel and JSW established JSW JFE Electrical Steel Private Limited, a joint venture for the production of GOES, with the aim of establishing an integrated manufacturing system for GOES in India. J2ES is expected to commence full production in 2027. Now, through this acquisition, JSW and JFE shall achieve instant market access and can promptly establish an integrated system from manufacturing to sales of GOES in India.

Mr. Jayant Acharya, Joint Managing Director & CEO, JSW Steel said, "The market for GOES is growing rapidly. This acquisition will enable the consortium of JSW and JFE to manufacture this product in India and supply it to customers in India and globally, thereby also enabling import substitution and hence taking another step towards a self-reliant India."

The closing of the transaction is subject to receipt of regulatory approval and fulfilment of customary conditions precedent as per Transaction Agreements.

Shares of JSW Steel Limited was last trading in BSE at Rs. 992.40 as compared to the previous close of Rs. 980.10. The total number of shares traded during the day was 106408 in over 7558 trades.

The stock hit an intraday high of Rs. 998.25 and intraday low of 973.70. The net turnover during the day was Rs. 105461862.00.

Source : Equity Bulls

Keywords

JSWSteel INE019A01038 JFESteelCorporation JV JsquareElectricalSteelNashik SPA thyssenkruppElectricalSteelIndia