The Competition Commission of India (CCI) has granted approval to a proposed corporate restructuring involving Bhushan Power and Steel Limited (BPSL), JSW Sambalpur Steel Limited, JFE Steel Corporation, and JSW Kalinga Steel Limited.
As part of the approved transaction, the steel business undertaking of BPSL will be transferred to JSW Sambalpur Steel Limited through a slump sale. Following this transfer, Japan-based JFE Steel Corporation will acquire a 50 percent direct equity stake in JSW Kalinga Steel Limited, resulting in JFE holding an indirect 50 percent stake in JSW Sambalpur Steel.
Upon completion of the transaction, JSW Kalinga Steel Limited and its subsidiary JSW Sambalpur Steel Limited will operate as a 50:50 joint venture between JFE Steel Corporation and JSW Steel Limited. This partnership marks a significant collaboration between the Indian and Japanese steel majors.
JFE Steel Corporation is part of the JFE Group of Japan, which has diversified operations spanning steel manufacturing, engineering solutions, and trading businesses globally. JSW Kalinga Steel Limited is currently a wholly owned subsidiary of Piombino Steel Limited, which in turn is a subsidiary of JSW Steel Limited. JSW Kalinga has not yet commenced commercial operations.
JSW Sambalpur Steel Limited, also a wholly owned subsidiary of JSW Kalinga, will own and operate the transferred steel business. Like its parent entity, JSW Sambalpur is yet to begin commercial production.
The target business involved in the transaction is currently owned by Bhushan Power and Steel Limited, a public sector steel manufacturer with integrated steelmaking and downstream processing facilities. BPSL is an indirect subsidiary of JSW Steel Limited through Piombino Steel Limited.
The CCI approval clears the way for the proposed restructuring, enabling the JSW–JFE partnership to move forward with its plans to strengthen steel manufacturing operations in India.