JSW Steel and JFE Steel to pick up 100% stake in Thyssenkrupp Electrical Steel

21 Oct 2024 , 10:12 AM

JSW Steel Ltd announced on Friday (October 18) that Jsquare Electrical Steel Nashik Private Ltd, a wholly-owned subsidiary of JSW JFE Electrical Steel Private Ltd, has signed a share purchase agreement to acquire a 100% equity interest in Thyssenkrupp Electrical Steel India Private Ltd (tkES India).

The company said that the purchase consideration for the entire transaction is ₹4,051.40 Crore, subject to closing adjustments.

tkES India was one of the first makers of grain-oriented electrical steel (GOES) in India, with a factory in Nashik, Maharashtra. The acquisition gives the company access to cutting-edge technology, which aligns with its aim of expanding its value-added portfolio.

In February 2024, JFE Steel and JSW incorporated JSW JFE Electrical Steel Private Limited, a joint venture for GOES production. It was formed with the goal of building an integrated GOES manufacturing system in India.

Jayant Acharya, Joint Managing Director and CEO of JSW Steel, stated, The GOES industry is expanding significantly. This acquisition will allow the JSW and JFE consortium to manufacture this product in India and supply it to consumers in India and around the world, allowing for import substitution and so taking another step towards India’s self-reliance.

The deal will be closed only after regulatory approval and the fulfilment of customary conditions precedent as outlined in the deal Agreements. 

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