JSW Steel may team-up with Noble Group for Stemcor deal

Sources with direct knowledge suggest that Sajjan Jindal’s JSW Steel may form an alliance with Hong Kong-based trading giant Noble Group to buy Stemcor’s assets. Singapore-listed, Noble Group with deep pockets could be a strong partner for JSW Steel in the race to buy Stemcor’s assets, a source said. Noble Group had also initiated talks to explore the possibility of buying out the UK-based Stemcor Holdings, three independent sources with direct knowledge said.

Goldman Sachs is running the process to sell Stemcor’s assets in India. The non-binding bids had been submitted by JSW Steel and Noble Group separately. Essar Steel, JSPL with some officials of Stemcor India, Bhushan Steel are said to be in the fray. Currently, due diligence process is on and JSW Steel and Noble Group are looking at coming together to beat the rest for the final bids which have to be submitted by mid-November.

Stemcor’s assets include Aryan Mining and Trading Corp. Pvt. Ltd, which has a 3 mtpa iron ore mine, and a separate manganese ore mine. Stemcor also owns Brahmani River Pellets Ltd’s beneficiation unit and pelletization facility with a production capacity of 4mt. The pellet plant has just received all the clearances and started operations.

When contacted, all three companies Stemcor, Noble Group and JSW Steel did not offer comment of this development.