Bhushan Steel rises as JFE, others eye co assets

NEW DELHI: Shares of Bhushan Steel rose on Thursday amid reports that JSW Steel and Japan’s JFE Holdings Inc are lining up a joint bid with a private equity firm for the assets of insolvent Bhushan Steel.

According to Reuters, JFE plans to set up a special purpose vehicle (SPV) with the two partners to manage the assets. JFE would hold a majority stake in the vehicle, while JSW Steel would operate Bhushan Steel’s plants.

JFE already owns a 15 per cent stake in JSW Steel.

Following the development, the stock gained 0.55 per cent to end the session at Rs 73.25 on BSE.

The bid, if successful, will give JFE a bigger foothold in the fast-growing Indian market where it has had a presence since 2010 in partnership with JSW Steel. It will also help JSW Steel expand in northern and eastern India without overstretching its balance sheet, the Reuters report said.

Meanwhile, ET reported that a delegation from global giant ArcelorMittal visited Bhushan Steel's plants for due diligence as it , multiple industry sources said.