CCI Approves Proposed JSW Group Internal Restructuring

New Delhi: The Competition Commission of India (CCI) on Tuesday approved the proposed internal restructuring of two JSW Group entities and BMM Ispat.

The two group entities are JSW Steel and JSW Projects.

“The proposed combination is an internal group restructuring within the JSW group with the objective of consolidating JSW Group’s majority interest in BMM into full ownership,” CCI said in a release.

JSW Group, through JSW Projects, holds a 58.47 per cent equity shareholding in BMM Ispat Ltd (BMM). The latter is commercially integrated within the group’s supply chain through intra-group sales and procurements.

To enhance operational, financial, and organisational efficiencies through economies of scale, JSW Group proposes to fully absorb BMM by way of an amalgamation into JSW Steel, it added.

JSW Steel manufactures and sells a diverse range of iron and steel products in India and abroad, while JSW Projects manufactures iron ore pellets, sponge iron/DRI, and power for captive use.

BMM is a steel manufacturing company. It operates an approximately one metric tonne per annum integrated steel manufacturing facility in Karnataka.

In May, JSW Steel said the board has approved the scheme of amalgamation of BMM Ispat, a related party, with the company at an enterprise value of Rs 6,400 crore.

Deals beyond a certain threshold require CCI approval. The regulator monitors unfair business practices and promotes fair competition in the marketplace.

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