Mumbai: JSW Steel on Friday said it will acquire a 100% stake in Thyssenkrupp Electrical Steel India jointly with Japan's JFE Steel Corp for Rs 4,051.4 crore.

"We hereby inform you that the Board of Directors of JSW Steel at its meeting held on October 18, 2024 has approved the acquisition of 100% equity interest in thyssenkrupp Electrical Steel India Private Limited (tkES India), jointly with JFE Steel Corporation, Japan, through a 50:50 joint venture," said JSW Steel in a stock exchange filing.

Thyssenkrupp Electrical Steel India is in the business of manufacture and sale of grain-oriented electrical steel with its facility located in Nashik, Maharashtra.

"Jsquare Electrical Steel Nashik Private Limited (J2ES), a wholly-owned subsidiary of JSW JFE Electrical Steel Private Limited has entered into a share purchase agreement for purchase of 100% equity shares of tkES India, and the Company has entered into other transaction related agreements, including for the technology package, with thyssenkrupp group entities. J2ES is a 50:50 joint venture between the Company and JFE," added JSW Steel about the all-cash deal.

"The purchase consideration for the transaction is Rs 4,051.40 crore, which includes purchase consideration for acquisition of 100% of equity interest in tkES India by J2ES and purchase consideration for licensing/transfer of the associated technology package by the Company," said JSW Steel.

tkES India's FY24 turnover was Rs 1,271 crore and its date of incorporation was July 19, 2000.

JSW Steel said the acquisition is in line with the company’s strategy of "enhancing its proportion of value-added steel products".

The indicative time period for completion of the acquisition is eight months, said JSW Steel.

The transaction is subject to approval from the Competition Commission of India.