CCI Approves JSW–JFE Steel Combination Involving Bhushan Power and Steel

The Competition Commission of India (CCI) has approved a proposed combination involving Bhushan Power and Steel Limited (BPSL), JSW Sambalpur Steel Limited (JSW Sambalpur), JFE Steel Corporation (JFE), and JSW Kalinga Steel Limited (JSW Kalinga).

Transaction Structure

The proposed transaction comprises two main elements. First, BPSL’s steel business undertaking (the Target Business) will be transferred to JSW Sambalpur through a slump sale. Second, JFE will acquire a 50% direct equity stake in JSW Kalinga, resulting in JFE indirectly holding a 50% shareholding in JSW Sambalpur. Following the completion of the transaction, JSW Kalinga—and indirectly JSW Sambalpur—will operate as a 50:50 joint venture between JFE and JSW Steel Limited.

About JFE Group

JFE is part of the JFE Group, which operates through three key companies: JFE Steel Corporation, focused on steel manufacturing; JFE Engineering Corporation, engaged in engineering services; and JFE Shoji Corporation, which handles trading activities.

JSW Kalinga and JSW Sambalpur

JSW Kalinga is a wholly owned subsidiary of Piombino Steel Limited (PSL), a subsidiary of JSW Steel Limited, and has yet to commence commercial operations. JSW Sambalpur, a wholly owned subsidiary of JSW Kalinga, will own the Target Business after the proposed transaction and is yet to begin commercial operations.

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Target Business and Ownership

The Target Business is currently owned by BPSL, a public limited company engaged in integrated steel manufacturing, including downstream processing of finished steel products. At present, BPSL is an indirect subsidiary of JSW Steel, held through Piombino Steel Limited.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.