The Supreme Court of India has cleared JSW Steel’s acquisition of debt-laden Bhushan Power & Steel Ltd (BPSL), overturning its earlier decision to reverse the deal.
The court noted that the Insolvency and Bankruptcy Code (IBC) had achieved its objective of transforming a loss-making company into a profit-making one.
In May, the court had ruled that JSW Steel’s 2019 acquisition of BPSL was not legally valid and ordered the transaction to be reversed, along with the liquidation of the company. However, JSW filed a review petition in June, leading to the latest ruling.
JSW Steel originally acquired BPSL as part of its expansion strategy, boosting its capacity from 2.75 mln tons to 4.5 mln tons.
JSW Steel’s consolidated crude steel production capacity stands at 35.7 million tons per annum.
