Competition Commission of India (CCI) approves combination involving Bhushan Power and Steel Ltd, JSW Sambalpur Steel, JFE Steel Corp and JSW Kalinga Steel.

Key facts

• Competition Commission of India (CCI) has approved the proposed combination between Bhushan Power and Steel Limited (BPSL), JSW Sambalpur Steel Limited (JSW Sambalpur), JFE Steel Corporation (JFE) and JSW Kalinga Steel Ltd (JSW Kalinga).
• The combination involves transfer of BPSL’s steel business undertaking (Target Business) to JSW Sambalpur by way of slump sale.
• JFE will acquire 50% direct shareholding in JSW Kalinga, resulting in indirect acquisition of 50% shareholding in JSW Sambalpur.
• Post-transaction, JSW Kalinga and JSW Sambalpur will operate as a 50:50 joint venture between JFE and JSW Steel Ltd.
• JSW Kalinga is a wholly owned subsidiary of Piombino Steel Limited, which is a subsidiary of JSW Steel Limited.
• JSW Sambalpur is a wholly owned subsidiary of JSW Kalinga and is yet to commence commercial operations.
• BPSL is currently an indirect subsidiary of JSW Steel, held through Piombino Steel Limited.