JSW Steel-Piramal to bid for Bhushan Steel, JFE Steel opts out
JSW Steel and Piramal Enterprises are bidding jointly for Bhushan Steel after Japanese company JFE Steel Corp walked out of the alliance
New Delhi: JSW Steel and Piramal Enterprises are bidding jointly for Bhushan Steel after Japanese company JFE Steel Corp walked out of the alliance, a source in the know of the matter said.
JSW Steel had roped in its Japanese business partner JFE Steel and Piramal Enterprises to bid jointly for Bhushan Steel, the maker of auto-grade steel in India undergoing insolvency proceedings for non-payment of dues.
“JFE has walked out. JSW Steel and Piramal Enterprises will now bid for Bhushan Steel,” the source said requesting anonymity.
The bid for Bhushan Steel closes today.
E-mail queries sent to JSW Steel and other two companies to seek response remained unanswered.
Besides JSW Steel, Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel and are said to be in race for Bhushan Steel.
Asked if JSW Steel could lower its bid as Japanese partner has opted out now, the source said, “JSW is in expansion mode, no matter one partner has gone, JSW can even increase the bid along with Piramal. It will be a 50:50 partnership now”.
JSW Steel reportedly had plans to offer Rs30,000 crore, double of the liquidation amount, for Bhushan Steel. Liquidation value is the minimum value set for a stressed asset by the committee of creditors.
According to Bhushan Steel’s website, the company is the third largest secondary steel producer in the country with an existing steel production capacity of 5.6 million ton per annum.
JSW Steel is in expansion mode and is also evaluating various opportunities for acquisitions to achieve the target of becoming 40 mt by 2030.
Editor's Picks »
- Mann Ki Baat: PM Modi urges people to shun plastics
- Three dozen companies line up IPOs worth Rs35,000 crore
- Niti Aayog says all macroeconomic parameters improved in four years of Modi govt
- Inclusion of ATF under GST will help airlines cut cost, says Suresh Prabhu
- Narendra Modi inaugurates first phase of Delhi-Meerut Expressway
- Motherson Sumi continues to face margin pressure in foreign markets
- What the Warren Buffett indicator tells us about market valuations today
- Jet Airways lands with a thud in Q4 as fuel costs increase
- IBC amendments: Some dilutions, and a lot more speed
- Patanjali’s gambit is paying off in toothpaste wars