JSW Steel, in collaboration with Japan's JFE Steel, has announced a joint venture to acquire Germany-based thyssenkrupp Electrical Steel India, which is one of the first manufacturers of electrical steel in India and reported a revenue of ₹1,271 crore for the fiscal year 2023-24.
The newly formed joint venture will acquire thyssenkrupp's grain-oriented electrical steel (GOES) unit in Nashik for ₹4,051 crore (approximately €440 million) in an all-cash deal.
The acquisition is being made through a 50:50 joint venture between JSW Steel and JFE Steel, named JSW JFE Electrical Steel Private Limited.
The transaction is expected to be completed within eight months, subject to regulatory approvals.
The acquisition will enhance JSW Steel's capabilities in the electrical steel segment, which is crucial for manufacturing components used in electric transformers, generators, and Motors.
This move is part of JSW Steel's strategy to strengthen its position in the specialty steel market and support India's growing demand for advanced materials.
JSW Steel has been actively expanding its portfolio through strategic acquisitions.
In 2018, JSW Steel made two acquisitions. It acquired Bhushan Steel for ₹19,350 crore (approximately $2.8 billion), which significantly increased its steel production capacity. In the same gesr, JSW Steel acquired Monnet Ispat & Energy for ₹2,875 crore (approximately $400 million), adding to its integrated steel production capabilities.
In 2014, JSW Steel acquired Ispat Industries for ₹18,000 crore (approximately $2.9 billion), further strengthening its position in the steel industry.
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