International Steel Mills
JSW Steel Bids for Bhushan Steel
Written by Sandy Williams
February 13, 2017
JSW Steel has presented a bid to acquire Bhushan Steel for approximately $3.75 billion and gain a 55 percent majority stake. The deal includes taking over Bhushan Steel’s debt which is estimated at $6.68 billion.
Bhushan Steel defaulted on its interest payments in August 2014 and has been working with State Bank of India and Punjab National Bank to restructure its loan or arrange a sale. Sources report that the Bhushan management is not supportive of the acquisition and JSW is negotiating with the lenders directly.
Acquisition of Bhushan Steel would put JSW Steel closer to its goal of becoming a 40 million tonnes per year producer. Bhushan Steel has an annual capacity of 5.6 million tons at its three locations.
Bhushan Steel reported a quarterly net loss in December of 7.34 billion rupees ($109.8 million).
SMU Note: Both JSW and Bhushan Steel have both been active exporters of light gauge galvanized steels to the United States in the past. Currently, India is under an anti-dumping and countervailing duty orders and, with the exception of Uttam, most are not shipping coated steel to the United States.
Sandy Williams
Read more from Sandy WilliamsLatest in International Steel Mills
Global steel mill output steady through May
Global raw steel production rose 2% from April to May, slightly above average production levels seen in recent months, according to data recently released by the World Steel Association (worldsteel).
Trump says US government to control 51% share in USS
President Trump says the US government will hold a 51% stake in U.S. Steel after the Nippon deal.
USS, Nippon Steel quiet as litigation deadline approaches
There has been little word from U.S. Steel, Nippon Steel, or the White House since President Trump endorsed the companies’ “partnership” on social media and celebrated it at the May 30 rally outside Pittsburgh.
Ternium’s Vedoya named AIST’s Steelmaker of the Year
Maximo Vedoya was awarded in recognition of Ternium’s expansion project in Pesquería, Mexico, and Ternium’s efforts to decarbonize steelmaking.
CRU: Baosteel hints at output cuts in China
Baosteel exec comments on market rumors of 50 million tons of output being cut this year, less than 0.5% of the 1 billion tons-plus China has produced annually in recent years.