Steel Product Producers

CRU: Jindal acquires Vitkovice Steel

Written by CRU


India’s Jindal Group has purchased all the shares of Czech steel maker Vitkovice after clearance from the Czech Republic’s anti-trust office which says the transaction will not distort competition.

“We are convinced that this will strengthen the company and the Czech steel industry,” CEO Radek Strouhal was quoted as saying by the CTK news agency. “The new industrial owner will bring the company stability and, above all, development in the form of investments in production technologies, sharing of foreign know-how and moving towards environmentally produced low-emission steel.”

The company has been co-operating with Jindal for more than a year, particularly in operational financing to stabilise its financial situation.

When the proposed acquisition was announced in October, the Indian group said it planned to invest up to €150 million ($156 million) through Jindal Steel International to develop Vitkovice’s works in Ostrava, northern Moravia, by expanding rolled sheet capacity and output of added-value products, and providing it with green steel. Vitkovice specializes in producing steel plates and sheet piles.

The planned transaction was delayed by the Czech Republic’s Financial Analytical Office which had blocked any disposal of Vitkovice’s financial assets when sanctions were imposed on Russia after its invasion of Ukraine in 2022. There were suspicions of Russian ownership of the company. No links were confirmed and the ban on the Czech steel maker selling its shares was lifted last August.

JSW Steel is part of Jindal Group.

This analysis was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.

CRU

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