The approval covers the transfer of BPSL’s steel business to JSW Sambalpur through a bulk sale, as well as JFE Steel’s direct acquisition of a 50% stake in JSW Kalinga. As a result of this transaction, JFE Steel will also hold an indirect 50% interest in JSW Sambalpur.
Following the merger, JSW Kalinga and indirectly JSW Sambalpur will operate as 50:50 joint ventures between JFE Steel and JSW Steel Ltd. JFE Steel functions as the steel arm of the JFE Group, which comprises three core companies active in steel production, engineering, and trading.
JSW Kalinga is a wholly owned subsidiary of Piombino Steel Limited, which itself is a subsidiary of JSW Steel Ltd. It has been reported that JSW Kalinga has not yet commenced commercial operations. JSW Sambalpur, on the other hand, has been structured as a wholly owned subsidiary of JSW Kalinga and will become the owner of BPSL’s steel business upon completion of the merger. JSW Sambalpur has also not yet started commercial production.
The steel assets targeted in this transaction are currently held within BPSL. BPSL is a publicly listed company engaged in integrated steel manufacturing and various related activities, including downstream processing of finished steel products. Currently, BPSL is an indirect subsidiary of JSW Steel through Piombino Steel Limited.
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