JSW Steel and JFE Steel to jointly acquire 100% stake in Thyssenkrupp Electrical Steel for ₹4,051 crore
The total purchase consideration for the transaction amounts to ₹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.
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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.
Jayant Acharya, Joint Managing Director and CEO of 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.”
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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 Ltd ended at ₹997.35, up by ₹17.25, or 1.76% on the BSE.
First Published: Oct 18, 2024 11:36 PM IST
