JSW Steel Ltd., in collaboration with Japan’s JFE Steel Corporation, has entered into a share purchase agreement to acquire 100% equity shares of thyssenkrupp Electrical Steel India for Rs 4,051.4 crore. The acquisition aligns with the company’s goal of increasing its portfolio of value-added steel products, an exchange filing said on Friday.
JSW Steel’s board had approved the proposal to jointly acquire the stake in tkES India with JFE Steel on Oct. 18, the filing said. The purchase consideration includes both—the acquisition of equity interest and licensing or transfer of technology.
By acquiring tkES India, JSW Steel aims to strengthen its presence in the electrical steel market and leverage the advanced technological capabilities brought by thyssenkrupp.
This acquisition will be executed through their joint venture, Jsquare Electrical Steel Nashik Pvt. Ltd., a wholly-owned subsidiary of JSW JFE Electrical Steel Pvt. Ltd.
JSW JFE Electrical Steel is a 50:50 joint venture between JSW Steel and JFE Steel that focuses on the electrical steel market. Through this acquisition, Jsquare will take full ownership of tkES India, a leading manufacturer and seller of grain-oriented electrical steel with a production facility located in Nashik, Maharashtra, the filing said.
The deal also includes agreements related to the transfer of associated technology packages from thyssenkrupp entities to JSW Steel, further enhancing the value of the acquisition.
The transaction is subject to approval from the Competition Commission of India.
Thyssenkrupp India reported a turnover of Rs 1,271 crore in fiscal 2023-24, highlighting its strong market presence in the electrical steel industry.