JSW-JFE 50:50 joint venture puts spotlight on Indian steel market

JSW Steel and Japan's JFE Steel will jointly own BPSL in a 50:50 venture, marking renewed global interest in India's steel sector as companies chase long-term growth opportunities

The deal between Sajjan Jindal-led JSW Steel and Japan’s JFE Steel Corporation signals renewed a global interest in India’s steel sector, highlighting the long-term growth opportunity the market offers compared to the rest of the world.

 

On Wednesday, JSW and JFE agreed to jointly own and operate Bhushan Power and Steel’s (BPSL’s) steel business in a 50:50 partnership.

 

The transaction is being positioned as a “win-win” for both partners since it would allow the Indian company to pare debt while opening up the growth horizon for the Japanese major beyond its home.

 

For JSW, the monetisation of half its stake