The Competition Commission of India (CCI) has approved a proposed combination between Bhushan Power and Steel Limited (BPSL), JSW Group, and Japan’s JFE Steel Corporation.
Under the cleared proposal, BPSL’s steel business undertaking will be transferred to JSW Sambalpur Steel Limited through a slump sale. Simultaneously, JFE Steel Corporation will acquire a 50% direct stake in JSW Kalinga Steel Limited. Since JSW Sambalpur is a wholly-owned subsidiary of JSW Kalinga, this acquisition grants JFE an indirect 50% shareholding in the Sambalpur unit.
This transaction effectively establishes a 50:50 joint venture between JFE Steel and JSW Steel Limited to operate both JSW Kalinga and JSW Sambalpur. While BPSL is currently an operating integrated steel manufacturer, both JSW Kalinga and JSW Sambalpur are yet to commence commercial operations. The CCI’s approval clears the regulatory path for this strategic partnership to operationalise its restructuring plans.
