News Room - Steel Industry

Posted on 23 Jul 2010

JFE to invest $1 billion in India's JSW Steel-media

JFE Holdings Inc, Japan's second-biggest steelmaker, plans to invest about $1 billion in India's JSW Steel Ltd, Bloomberg reported, citing a person with knowledge of the deal.

 

JFE plans to buy securities convertible into shares at a minimum price of 1,300 rupees each, and may own a little less than 15 percent of JSW after the conversion, Bloomberg said.

 

JFE Steel, the main steelmaking unit of JFE Holdings, and JSW had agreed in November on an alliance that could include the two companies taking stakes in each other.

 

JSW, India's No.3 producer of the alloy, had said last month that it was in talks to sell a stake of about 5 to 15 percent to JFE.

 

JFE Steel spokesman Eiji Okumura said the firm is considering taking a stake in JWE but that nothing has been decided.