JSW Steel, JFE Seal ₹244.83 Billion Joint Venture Deal
JSW Steel has announced the sale of the steel business of its subsidiary, Bhushan Power and Steel, to a newly formed joint venture with Japan’s JFE Steel for ₹244.83 billion ($2.72 billion). The move is part of JSW’s broader strategy to secure funding for its future growth plans. Following the announcement, JSW Steel’s shares dipped 1.6%, ranking it among the top percentage losers on the Nifty Metal index.
The agreement was made possible after India’s Supreme Court approved JSW’s takeover of the debt-ridden Bhushan Power and Steel in September, ending months of legal challenges. As part of the joint venture, JFE Steel will invest ₹157.50 billion in two phases. The venture aims to scale up crude steel production to 10 million tonnes by 2030, according to a statement from the Japanese steelmaker.
This collaboration adds to existing partnerships between JSW Steel and JFE Steel, including investments in grain-oriented electrical steel production. Analysts say the timing is favourable, with India experiencing a strong rebound in steel demand driven by improved manufacturing activity and increased infrastructure spending since the September quarter.
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