The Competition Commission of India (CCI) has granted approval for a proposed corporate restructuring involving Bhushan Power and Steel Limited (BPSL), JSW Sambalpur Steel Limited, JFE Steel Corporation, and JSW Kalinga Steel Limited. The clearance allows the JSW Group and Japan’s JFE Steel to move ahead with their planned joint venture arrangement.
Key Elements of the Proposed Transaction
The approved transaction is structured in two stages. Under the first step, Bhushan Power and Steel’s steel manufacturing business will be transferred to JSW Sambalpur Steel Limited through a slump sale arrangement.
In the second step, JFE Steel Corporation will acquire a 50% equity stake in JSW Kalinga Steel Limited. This acquisition will result in JFE indirectly holding a 50% ownership interest in JSW Sambalpur Steel as well.
Upon completion of the transaction, JSW Kalinga Steel—and, by extension, JSW Sambalpur Steel—will operate as a 50:50 joint venture between JSW Steel Limited and JFE Steel Corporation.
JFE Group Overview
JFE Steel Corporation is part of the Japan-based JFE Group, which operates across three principal business verticals. These include steel manufacturing through JFE Steel, engineering and infrastructure services via JFE Engineering Corporation, and global trading operations conducted by JFE Shoji Corporation.
Profile of JSW Kalinga and JSW Sambalpur
JSW Kalinga Steel Limited is a wholly owned subsidiary of Piombino Steel Limited, which itself is a subsidiary of JSW Steel Limited. The company has not yet commenced commercial operations. JSW Sambalpur Steel Limited is a wholly owned subsidiary of JSW Kalinga and is also yet to begin commercial production. Following the transaction, JSW Sambalpur will house the steel business transferred from Bhushan Power and Steel.
About the Target Business
The steel business being transferred is currently owned by Bhushan Power and Steel Limited, a public limited company engaged in integrated steel manufacturing, including downstream processing of finished steel products. At present, BPSL operates as an indirect subsidiary of JSW Steel Limited through Piombino Steel Limited.
Summary
The Competition Commission of India has approved a proposed JSW–JFE combination involving the transfer of Bhushan Power and Steel’s steel business to JSW Sambalpur and JFE Steel’s acquisition of a 50% stake in JSW Kalinga. Once completed, JSW Kalinga and JSW Sambalpur will operate as a 50:50 joint venture between JSW Steel and JFE Steel, paving the way for deeper collaboration in India’s steel sector.
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