Gold Silver Reports (GSR) – JSW Steel Goes Shopping In The U.S. — JSW Steel Ltd. today entered into an agreement to buy a steel plant in Delaware, Ohio.
The Mumbai-headquartered steelmaker has been looking to increase its production capacity in the U.S. after Donald Trump imposed import tariff on steel and aluminium products. The company is also ramping up capacity at its own plants in the U.S.
The Sajjan Jindal-led company, today agreed with SM International Ltd, Acero Junction Holdings Inc and Acero Junction Inc to acquire 100 percent stake in the company for around $80.85 million, according to its stock exchange notification.
The deal is subject to the fulfillment of conditions precedents and other terms as per the stock purchase agreement, added the company.
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The acquisition is to provide an opportunity for the company to establish its presence in Ohio and gain deeper access to the North American market.
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JSW Steel Exchange Filing
The move comes after the steelmaker’s U.S. unit signed the pact with Texas Governor’s office to invest up to $500 million in its Texas facility as it seeks to achieve 1 million tonne installed capacity and reduce its dependence on imports from India and Latin American nations.
Shares of JSW Steel snapped three-day gains and closed 3.6 percent lower at Rs 288.15 yesterday. The stock has returned 53.1 percent this financial year, compared to 11.3 percent advance in the country’s benchmark Sensex. The scrip is 8.6 percent below the Bloomberg consensus one-year price target. – Neal Bhai Reports (NBR) INDIA
