Mumbai: The Competition Commission of India (CCI) has given its nod to JSW Steel Ltd’s proposed strategic joint venture with Japan’s JFE Steel Corporation for the steel business of Bhushan Power and Steel Ltd (BPSL), removing a key regulatory hurdle for the transaction.
In a regulatory filing on Tuesday, JSW Steel said the approval follows the board’s December 3 decision to enter into a partnership with JFE Steel for the acquisition and operation of BPSL’s steel business undertaking. The transaction involves the transfer of the BPSL business on a slump sale, going-concern basis to JSW Sambalpur Steel Ltd, a JSW group entity.
The clearance from the competition regulator is a crucial step in the deal’s execution, given the scale of the assets and the involvement of a global steel major. Industry watchers said the partnership is expected to combine JSW’s domestic operating strengths with JFE’s technological expertise, potentially enhancing efficiency and product mix at the acquired facilities.
JSW Steel had earlier indicated that the transaction is part of its broader strategy to expand capacity and strengthen its presence in value-added steel segments. With the CCI approval in place, the company is expected to move ahead with the remaining procedural steps to complete the transfer.
The company said details of the approval have been placed on its website, in line with disclosure requirements.