Indian steelmaker JSW Steel is in advanced talks with Japan’s JFE Steel Corporation to sell a 50% stake in its wholly owned subsidiary, Bhushan Power and Steel Ltd (BPSL), for INR 150-160 billion ($1.7-1.8 billion), according to local media reports.
The transaction, which could be finalised by year-end, would mark JFE’s second joint venture with JSW after JSW JFE Electrical Steel. Proceeds from the deal are expected to help JSW reduce debt or fund expansion plans, reports add. JSW Steel’s net debt stood at INR 791.53 billion, with a net debt-to-Ebitda ratio of 2.97x in the June quarter.
Talks for the new partnership have reportedly been underway for over a year but were delayed by the prolonged insolvency process of BPSL.
The case concluded earlier this year after the Supreme Court (SC) approved JSW’s INR 197 billion acquisition of the company in a landmark 26 September ruling
The verdict overturned the SC’s earlier, 2 May order that had annulled JSW’s resolution plan, first approved in 2019, and directed BPSL into liquidation. It marked one of the most significant legal reversals in Indian steel sector history.
The potential JFE partnership could enhance JSW’s technological capabilities and strengthen its value-added steel portfolio, particularly in high-grade automotive and electrical steels. The move also aligns with JFE’s strategy of deepening its India presence through equity collaborations rather than greenfield investments.
The two companies have recently stepped up cooperation. In February, JSW and JFE finalised the acquisition of thyssenkrupp Electrical Steel India (tkES India) through their joint venture, JSW JFE Electrical Steel (J2ES). The Nashik-based facility manufactures and sells grain-oriented electrical steel (GOES). Both companies hold a 50% stake in J2ES, with the acquisition valued at JPY 71 billion, or $457 million
In August, J2ES said it would invest INR 58.45 billion in expanding capacity at its prospective GOES plant in Vijayanagar, Karnataka to 100,000 tonnes/year from the previously planned 62,000 t/y. Commissioning of the plant is targeted for the fiscal year ending March 2028
