In a very recent order, the Competition Commission of India (CCI) has approved the acquisition of thyssekrupp Electrical Steel India Pvt Ltd (thyssenkrupp India) by Jsquare Electrical Steel Nashik Pvt Ltd (JSquare).
A newly-incorporated company JSquare is a subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), in turn a 50:50 joint venture between JSW Steel Ltd and Japan-based JFE Steel Corporation.
J2ES currently does not have any commercial operations but is expected to commence manufacture and sale of grain-oriented electrical steel (GOES) in India from 2027 onwards, the CCI order said.
The JSW Group is engaged in diverse sectors such as steel, energy, infrastructure, automotive, defence, realty and cement. JFE Group is engaged in businesses centered around production of steel.
Background
In October this year, JSW JFE Electrical Steel Pvt Ltd has entered into a formal agreement to fully acquire thyssenkrupp Electrical Steel India Pvt Ltd (tkES India) in a deal worth Rs.4,051 crore. This acquisition will help realize the earlier-announced plans of JSW-JFE to enter the grain-oriented electrical steel business.
The acquisition will be made by Jsquare Electrical Steel Nashik Pvt Ltd, a wholly owned subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), in turn a a 50:50 joint venture between OP Jindal Group company JSW Steel Ltd and Japan-based JFE Steel Corporation.
tkES India is one of the first manufacturers of grain-oriented electrical steel (GOES) in India with its facility located in Nashik, Maharashtra.
India’s demand for GOES (also known as cold-rolled grain oriented steel or CRGO steel or simply CRGO) is estimated at around 3 lakh tonnes (0.3 million tonnes per year). The Nashik plant of tkES India has capacity of 50,000 tonnes per year. While this plant caters largely to the domestic market, it also exports to 22 countries across six continents.
Also Read: JSW-JFE to acquire thyssenkrupp Electrical Steel India (October 19, 2024)
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