10 months ago
JSW Steel, JFE Steel Form Rs 31,500-Crore Joint Venture
JSW Steel and JFE Steel Corporation have teamed up to create a new company for the steel business of Bhushan Power & Steel.
This partnership is worth Rs 31,500 crore, with JFE Steel investing half of that amount for a 50% share.
JSW Steel will receive Rs 24,483 crore from this deal, which will help strengthen its financial position.
JSW Steel has already increased the production capacity of Bhushan Steel from 2.75 million tonnes to 4.5 million tonnes per year.
Both companies believe this joint venture will help them grow and contribute to the development of the steel industry in India.
JSW Steel's share price has seen a slight decline recently but has increased significantly over the past year.
JSW Steel and JFE Steel Corporation form a Rs 31,500 crore joint venture for Bhushan Power & Steel's steel business.
JFE Steel invests Rs 15,750 crore for a 50% stake in the joint venture.
The transaction involves a slump sale for Rs 24,483 crore, strengthening JSW Steel's balance sheet.
JSW Steel increased Bhushan Steel's production capacity from 2.75 million to 4.5 million tonnes per annum.
The joint venture aims to leverage both companies' expertise and technological strengths for growth.
- Who
- JSW Steel and JFE Steel Corporation
- What
- Formed a joint venture for Bhushan Power & Steel's steel business
- Where
- India
- When
- Details not specified in the article
- Why
- To leverage expertise, technological strengths, and contribute to the growth of the Indian steel industry
Key facts
- Companies Involved
- JSW Steel, JFE Steel Corporation
- Equity Value
- Rs 31,500 crore
- JFE Steel's Investment
- Rs 15,750 crore for 50% stake
- Transaction Type
- Slump sale for Rs 24,483 crore
- Bhushan Power & Steel Capacity
- 4.5 million tonnes per annum
- JSW Steel Share Price
- Rs 1,144 (as of Wednesday)
- JSW Steel's Share Price Change
- Down 1.55% intra-day, down 4.2% in past month, up 14.5% in last year
Quotes
Jayant Acharya
Joint Managing Director, JSW Steel
“The deal will result in deleveraging of balance sheet by ₹37,250 crore and help in taking up the planned 25-mt integrated port-based steel plant at Paradip in Odisha.”
thehindubusinessline.com
“The proposed plant will be connected through a slurry pipeline of 300 km to the captive iron ore mine and the work on pellet plant is in progress.”
thehindubusinessline.com
JSW Steel
Indian steel manufacturing company
“The company will bring in JFE, a trusted, long‐term strategic partner, that will bring in technological expertise, and along with JSW Steel’s capability of project execution and operational excellence, will create further value for the joint venture. JSW Steel shall continue to remain invested in, and will participate in the future value creation in the joint venture.”
thehindubusinessline.com
