Global steelmaking giants Nippon Steel Corporation and JFE Steel Corporation have sought the Competition Commission of India (CCI)‘s approval to acquire stakes in Queensland’s Blackwater Coal Mine.
The proposed transactions, valued as strategic investments, aim to bolster the companies’ access to coking coal, a key raw material for steel production.
According to the filing under Regulation 13(2) of the CCI’s Combination Regulations, the transaction entails Nippon Steel acquiring a 20 per cent interest in BW Coal Mine along with coal offtake rights, while JFE Steel plans to acquire a 10 per cent stake with similar rights.
The acquisitions, referred to as the ‘Proposed Nippon Transaction’ and ‘Proposed JFE Transaction,’ respectively, are separate and independent, but strategically aligned to enhance supply chain reliability for the acquirers.
About the parties
Nippon Steel operates manufacturing hubs in Japan and across 15 countries, with business interests spanning steelmaking, engineering, chemicals, and system solutions. In India, it manufactures tubes, pipes, automotive steel sheets, and other steel products, playing a pivotal role in the automotive and construction sectors.
JFE Steel, a global steel-making leader, is engaged in steel production, engineering, and trading activities through its affiliates. Both entities have incorporated special purpose vehicles — NS Blackwater Pty Limited and JFE Steel Australia (BW) Pty Ltd. — to facilitate their respective acquisitions.
The BW Coal Mine, operational since 1967, is a major supplier of coking coal, including imports to India, which is a vital input for the domestic steel industry.
Competition Assessment
The filing assures the CCI that the acquisitions will not result in any appreciable adverse effect on competition (AAEC) in India. The parties argue that their combined market share in the relevant markets — defined as the market for sale of coal (and its sub-segment, coking coal) and the vertical linkage between coking coal supply and finished steel production — remains insignificant.
With numerous domestic producers and importers competing in these markets, the transactions are expected to have minimal impact on competitive dynamics.
Strategic Importance
The acquisition underscores the criticality of securing reliable raw material sources for India’s rapidly growing steel industry. As the Indian market continues to expand, access to quality coking coal remains a strategic imperative for major steelmakers, including global players like Nippon Steel and JFE Steel.