The Competition Commission of India (CCI) has approved the proposed combination involving JSW Steel Limited, JSW Projects Limited and BMM Ispat Limited, paving the way for the consolidation of JSW Group’s majority interest in BMM Ispat into full ownership.
The proposed combination is an internal restructuring within the JSW Group under which BMM Ispat will be amalgamated into JSW Steel. JSW Group currently holds a 58.47% equity shareholding in BMM Ispat through JSW Projects.
BMM Ispat is already commercially integrated within the JSW Group’s supply chain through intra-group sales and procurements. The proposed amalgamation is aimed at enhancing operational, financial and organisational efficiencies through economies of scale, resource pooling and rationalisation of capital.
JSW Steel, a listed company on the National Stock Exchange of India and BSE, is primarily engaged in the manufacture and sale of a range of iron and steel products in India and overseas. It has integrated operations spanning mining, raw material processing, steel production and downstream value-added manufacturing.
JSW Projects is an unlisted public limited company headquartered in Mumbai and is part of the JSW Group. It manufactures iron ore pellets and Sponge Iron/Direct Reduced Iron (DRI) and is also engaged in power generation for captive use. The products manufactured by JSW Projects are ultimately used in the manufacture of steel and steel products for JSW Steel.
BMM Ispat is a public limited company engaged in the manufacture of semi-finished and long steel products. It operates an approximately 1 million tonnes per annum integrated steel manufacturing facility in Karnataka.
The facility undertakes the steelmaking process from ironmaking through to finished long-product rolling at its Karnataka plant.
The CCI said the proposed combination seeks to consolidate the JSW Group’s existing majority interest in BMM Ispat into full ownership through its amalgamation with JSW Steel.
The Commission said its detailed order will follow.
