CCI approves acquisition of thyssenkrupp Electrical Steel by JSquare
Author: PPD Team Date: December 11, 2024
The Competition Commission of India (CCI) has recently approved the acquisition of thyssenkrupp Electrical Steel India Pvt Ltd (thyssenkrupp India) by Jsquare Electrical Steel Nashik Pvt Ltd (JSquare).
JSquare, a newly-incorporated subsidiary of JSW JFE Electrical Steel Pvt Ltd (J2ES), is a 50:50 joint venture between JSW Steel Ltd and Japan’s JFE Steel Corporation.
Currently, J2ES has no commercial operations but plans to begin the manufacture and sale of grain-oriented electrical steel (GOES) in India by 2027.
JSW Group is involved in multiple sectors, including steel, energy, infrastructure, automotive, defence, realty, and cement, while JFE Steel focuses on steel production.
In October 2024, JSW JFE Electrical Steel Pvt Ltd entered into a formal agreement to acquire thyssenkrupp Electrical Steel India Pvt Ltd for Rs 4,051 crore. This acquisition aligns with the JSW-JFE joint venture’s strategy to enter the GOES market.
thyssenkrupp India, located in Nashik, Maharashtra, is one of the first manufacturers of GOES in India. The company’s facility has a production capacity of 50,000 tonnes per year and supplies to both domestic and international markets, exporting to 22 countries across six continents. India’s demand for GOES is estimated to be around 300,000 tonnes annually.