JSW Steel has announced that its wholly owned subsidiary, Jsquare Electrical Steel Nashik Private Limited, has signed a share purchase agreement to acquire 100pct equity interest in Thyssenkrupp Electrical Steel India Private Limited. The total purchase consideration for the transaction is INR 4,051.40 crore (USD 481.9 mln), subject to closing adjustments.
In addition to the acquisition, JSW has entered into agreements for the licensing and transfer of associated technology from the Thyssenkrupp group. Thyssenkrupp Electrical Steel India is one of the first manufacturers of grain-oriented electrical steel in India, with a facility located in Nashik, Maharashtra.
Earlier in February 2024, JFE Steel and JSW established a joint venture, JSW JFE Electrical Steel Private Limited (J2ES), for electrical steel production, which is expected to begin full production in 2027. This acquisition will provide JSW and JFE with immediate market access and enable the establishment of an integrated system for the manufacturing and sales of grain-oriented electrical steel in India.
JFE Steel anticipates growing demand for high-grade electrical steel sheets as electric vehicles and renewable energy become more prevalent.
Thyssenkrupp stated that the proceeds from the sale will strengthen its steel segment’s capital base and support green transformation efforts. Dennis Grimm, a spokesman for Thyssenkrupp Steel’s executive board, emphasized that the high cost of raw material supply from Germany has weakened competitiveness in India, making this sale a timely and strategic decision.
1 USD / 84 INR
