Companies

JSW Steel completes acquisition of Welspun’s steel business

Our Bureau Mumbai | Updated on July 24, 2021

In April, the company had announced acquisition of steel plates and coils business of Welspun for ₹848 crore

JSW Steel has completed the acquisition of the steel plate and pipe business of Welspun Corp by paying the last tranche of ₹86 crore.

In April, the company had announced acquisition of high-grade steel plates and coils business of Welspun on a slump sale basis for ₹848 crore.

The entire amount was to be paid on deferred basis subject to fulfilment of certain conditions.

Following this, JSW Steel had paid ₹225 crore in April and another ₹498 crore in June as part consideration for the acquisition.

Also read: JSW Steel records highest-ever profit of ₹5,900 cr in Q1

The balance consideration of ₹86 crore, after making closing adjustments towards net working capital, has been paid to Welspun, JSW Steel said in an exchange filing.

JSW Steel has been on an acquisition spree in downstream segment. It acquired Vardhman Industries for ₹69 crore through Insolvency and Bankruptcy Code in 2019. This was followed by acquisition of Monnet Ispat and Asian Colour Coated.

In March, it acquired Bhushan Power and Steel for ₹19,300 crore, but the Enforcement Directorate had attached the plant as part of investigation against the original promoter of BPSL.

Even while waiting for final approval from the Supreme Court, JSW Steel went ahead and closed the deal by signing an agreement with the lenders to return the money if the Supreme Court verdict goes against the acquisition.

Published on July 24, 2021

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