JSW Steel along with JFE Steel Corporation has acquired thyssenkrupp Electrical Steel India for ₹4,051 crore. Thyssenkrupp India has a manufacturing facility in Nashik, Maharashtra, to produce grain-oriented electrical steel.
The acquisition is in line with the company’s strategy to enhance its proportion of value-added steel products, said the company in a statement on Friday.
The transaction subject to the approval of the Competition Commission of India, is expected to be executed in eight months from signing of agreement, it added.
The deal will be executed by Jsquare, a wholly-owned subsidiary of JSW JFE Electrical Steel, a 50:50 joint venture of both JSW Steel and Japan’s JFE Steel Corporation.
The turnover of thyssenkrupp Electrical Steel India was down marginally at ₹1,271 crore last fiscal against ₹1,275 crore logged in the previous year. It was ₹782 crore in FY22.
Grain-oriented electrical steel is crucial for the production of energy-efficient transformers, high-performance generators and motors. Avendus Capital advised thyssenkrupp AG on this transaction.