Construction Industry News
Jindal Stainless has announced that it has completed the acquisition of the remaining 74 percent stake in Jindal United Steel (JUSL), an Odisha-based company, for Rs 9.58 billion. Previously, JSL had a 26 percent stake in JUSL. With this transaction, JUSL now becomes a wholly owned subsidiary of JSL.
The acquisition included a cash consideration of Rs 9.58 billion and consolidates all critical facilities of stainless steel production under one umbrella. JUSL currently operates a hot strip mill (HSM) with a capacity of 1.6 million tonnes per year (MTPA) and a cold rolling mill with a capacity of 0.2 MTPA. In addition, it is undergoing capacity expansion to 3.2 MTPA in Jajpur, Odisha.
Abhyuday Jindal, Managing Director of JSL, stated that due to the positive outlook on stainless steel and the association between JUSL and JSL, the decision to consolidate the stainless steel production facilities was taken by the board of directors.
The acquisition is expected to foster better synergies between the two companies and establish a preferred governance structure, ultimately increasing value for all stakeholders. Both JSL's board of directors and shareholders had previously approved this transaction.
Jindal Stainless is the country's largest stainless steel manufacturer, with an annual melting capacity of 2.9 million tons (MT). It operates two stainless steel production units in Haryana and Odisha.
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