JSW Steel, Japan’s JFE Steel to acquire Thyssenkrupp Electrical Steel India for Rs 4,051 crore

JSW Steel on October 18 said it will acquire 100 percent stake in Thyssenkrupp Electrical Steel India jointly with Japan’s JFE Steel Corp through a 50:50 joint venture for Rs 4,051.4 crore.  

Thyssenkrupp Electrical Steel India is involved in the business of manufacture and sale of grain-oriented electrical steel with its facility located in Nashik, Maharashtra. It reported a turnover of Rs 1,271 crore (FY24). 

The Board of Directors of JSW Steel at its meeting held on October 18, 2024 has approved the acquisition of 100 percent equity interest in Thyssenkrupp Electrical Steel India (tkES), jointly with JFE Steel Corporation, Japan, through a 50:50 joint venture and the licensing/transfer of associated technology package relating to the operations of tkES India to the company from thyssenkrupp group (together the transaction), JSW Steel said in a disclosure to the exchanges. 

“Jsquare Electrical Steel Nashik Private Limited (J2ES), a wholly-owned subsidiary of JSW JFE Electrical Steel Private Limited has entered into a share purchase agreement for purchase of 100 percent equity shares of tkES India, and the Company has entered into other transaction related agreements, including for the technology package, with thyssenkrupp group entities. J2ES is a 50:50 joint venture between the company and JFE,” added JSW Steel about the all-cash deal. 

JSW Steel said the acquisition is in line with the company’s strategy of “enhancing its proportion of value-added steel products”. 

The indicative time period for completion of the acquisition is eight months, said JSW Steel. 

The transaction is subject to approval from the Competition Commission of India (CCI).