JSW Steel-JFE Steel JV To Buy thyssenkrupp Electrical Steel India For $482 Mln
tkES India is involved in the business of manufacturing and sells of grain-oriented electrical steel
(The Corner Office Journal) -- JSW Steel Ltd. and Japanese steelmaker JFE Steel Corporation’s joint venture agreed to acquire a 100% stake in thyssenkrupp Electrical Steel India Private Ltd. (tkES India) for 4,051.40 crore rupees ($482 million) cash.
The deal will be accomplished via Jsquare Electrical Steel Nashik Private Ltd., a wholly owned subsidiary of JSW JFE Electrical Steel Private Ltd., which is a 50:50 joint venture between JSW Steel and JFE Steel, the Indian steelmaker said in a stock exchange announcement.
In addition, JSW Steel also entered into other agreements, including the licensing/transfer of associated technology package related to the operations of tkES India to the company from thyssenkrupp group.
The total purchase consideration for the deal is 4,051.40 crore rupees, subject to closing adjustments.
tkES India is involved in the business of manufacturing and sells of grain-oriented electrical steel (GOES), with its facility located in Nashik, Maharashtra. Its turnover stood at 1,271 crore rupees in FY24, compared with 1,275 crore rupees a year earlier.
Boost To Value-Added Portfolio
JSW Steel said the acquisition is in line with the company’s strategy of enhancing its proportion of value-added steel products.
“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…,” JSW Steel Joint Managing Director and Chief Executive Officer Jayant Acharya said.
The companies established JSW JFE Electrical Steel in February 2024 for the production of GOES and with an aim to set up an integrated manufacturing system for GOES in India. The joint venture 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,” JSW Steel said.
The deal, which is likely to conclude in eight months, is subject to approval from the Competition Commission of India and fulfilment of customary conditions.
Note: $1 = 84.0711 Indian rupees
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