JSW Steel joins race for Tata’s UK assets
Confirming its interest, JSW Steel said it is evaluating several opportunities, including the current opportunity of UK steel facilities. “As part of the company’s growth strategy, the company evaluates several opportunities, including the current opportunity of UK steel facilities. It is premature to add any further at this stage,” it said in a statement.
Earlier on Tuesday, people in know of the development said JSW Steel has also submitted an expression of interest (EoI) for Tata Steel UK and is now waiting for a go-ahead from the Tatas.
On Monday, Tata Steel had said it has taken forward seven EoIs submitted for its UK business to the next stage of the sale process. Tata Steel UK’s assets include Port Talbot plant in south Wales, UK’s largest with around 4,000 workers, as well as sites at Newport, where more than 1,300 people are employed, and Rotherham, which employs 1,200.
The flagship firm of the over $11-billion JSW Group, JSW Steel, with steel plants in Karnataka, Tamil Nadu and Maharashtra, has a combined installed capacity of 18 million tonnes per annum (mtpa).
Earlier this month, Jindal’s JSW Energy had said it will acquire a 1,000-mw plant from his younger brother Naveen Jindal-led heavily-indebted Jindal Steel and Power Ltd for Rs 6,500 crore. JSW will pay at least Rs 4,000 crore, excluding net current assets and an additional Rs 2,500 crore if JSPL plant in Raigarh (Chhattisgarh), secures a long-term power purchase agreement.