JSW Steel Limited has formed a joint venture with the South Korea-based POSCO Group.
The transaction involves the issuance of shares of Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel, to POSCO-India Private Limited and POSCO Co., Ltd (entities part of the POSCO Group), pursuant to which such subsidiary would become a 50:50 joint venture between JSW Steel and the POSCO Group for a total consideration of $110.72 million ($ 55.36 million for 50%).
Khaitan & Co advised JSW Steel on the formation of this JV.
The transaction team consisted of Shishir Vayttaden (Partner), Reeti Agarwal (Principal Associate) and Radhika Naik (Associate) with assistance from the following:
Intellectual property diligence related aspects: Nirupam Lodha (Partner), Malika Nandkeolyar (Senior Associate) and Toshani Mukherjee (Senior Associate).
Chandhiok & Mahajan also advised JSW Steel on this JV. The Firm is providing comprehensive legal support on competition and regulatory workstreams on this multi-jurisdictional transaction. The Firm is assisting JSW Steel in procuring the requisite antitrust approvals, including antitrust clearance from the Competition Commission of India and across other jurisdictions.
The team is led by Karan Singh Chandhiok (Partner and Head of Competition and Regulatory), alongside Deeksha Manchanda (Partner) and Avinash Amarnath (Partner), with support from Nicky Collins (Managing Associate), Tarun Donadi (Senior Associate), Bhavika Chhabra (Senior Associate), and Saumya Sunidhi (Associate).
The completion of the transaction is subject to the receipt of relevant anti-trust approvals and the satisfaction of other conditions precedent set out in the share subscription and joint venture agreement entered into between the parties.
The proposed joint venture will set up a greenfield 6 MTPA integrated steel plant in Odisha.
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