JSW to sell 50% in Bhushan to JFE for up to ₹16,000 cr

Billionaire Sajjan Jindal-led JSW Steel is in advanced talks with JFE Steel Corporation, Japan’s second-largest steelmaker, to bring it in as a partner in wholly owned subsidiary Bhushan Power and Steel Ltd in a deal valued at about ₹15,000-16,000 crore, an executive aware of the matter said.

- Dipali Banka

The transaction, which could be finalized this quarter, would give JFE a 50% stake in the subsidiary and help billionaire Sajjan Jindal-led JSW pare debt or fund expansion plans, according to the executive who spoke on condition of anonymity.

The move comes after the Supreme Court in September approved India's largest steelmaker's ₹19,700-crore plan to take over bankrupt Bhushan Power and Steel Ltd, marking the end of one of India’s longest-running insolvency battles.

“The discussions for a second joint venture with JFE Japan has been going on for over a year now. However, the insolvency battle in the court delayed such discussion,” the executive cited above said. JSW’s other joint venture with JFE Steel is JSW JFE Electrical Steel.

Responding to Mint’s queries, a JSW spokesperson said the company would not like to comment on speculation.

“JSW Steel's strategy includes evaluating various opportunities, both organic and inorganic, in India and overseas— including potential collaborations aimed at enhancing scale, efficiency, and global competitiveness,” the spokesperson said.