Billionaire Sajjan Jindal-led JSW Steel Ltd said Friday it has formed a joint venture with Japan's JFE Steel Corporation to acquire German industry group Thyssenkrupp AG's Indian unit.
The 50:50 joint venture, JSW JFE Electrical Steel Pvt Ltd, will take over Thyssenkrupp Electrical Steel India Pvt. Ltd for Rs 4,051.40 crore ($480 million), JSW said in a stock-exchange filing.
The deal involves the licensing and transfer of associated technology package relating to the operations of Thyssenkrupp Electrical Steel from Thyssenkrupp group
The completion of the transaction is subject to approval from the Competition Commission of India. The long stop date for the transaction is eight months from the date of signing.
Thyssenkrupp's India unit manufactures grain-oriented electrical steel at its facility located in Nashik. It was incorporated in 2000 and posted revenue of Rs 1,271 crore for FY24, compared with Rs 1,275 crore for FY23 and Rs 782 crore the year before.
Avendus Capital, along with Germany's goetzpartners Corporate Finance GmbH, advised Thyssenkrupp AG on this transaction.