India's Competition Commission has approved the acquisition of Thyssenkrupp Electrical Steel India by Jsquare Electrical Steel Nashik, a wholly-owned subsidiary of JSW JFE Electrical Steel (J2ES). The transaction, involving Jsquare obtaining 100% of the share capital of Thyssenkrupp India, is expected to significantly impact the electrical steel manufacturing landscape in the region, according to a press release.

Jsquare, a newly established entity, operates as a wholly-owned subsidiary of India’s JSW Steel Limited and Japan’s JFE Steel Corporation. JSW JFE Electrical Steel was formed in 2023 as a joint venture with equal stakes held by JSW Steel and JFE Steel. Currently, J2ES has no commercial operations but plans to begin producing grain-oriented electrical steel (GOES) in India by 2027.

The JSW Group has a diverse portfolio spanning various sectors such as steel, energy, infrastructure, automotive, defence, real estate and cement. On the other hand, Japan’s JFE Group primarily focuses on steel production. Thyssenkrupp India is renowned for its manufacturing and sale of GOES, which is essential for various electrical applications. This acquisition aligns with the strategic goals of both Jsquare and J2ES to enhance their market presence and operational capabilities in India's electrical steel sector.

As global demand for high-quality electrical steel rises, this deal positions Jsquare to leverage Thyssenkrupp’s established expertise and market reach. The transaction is expected to facilitate significant advancements in manufacturing processes and technology transfer within India's burgeoning industrial landscape. By acquiring Thyssenkrupp Electrical Steel India, Jsquare aims to bolster its capabilities and expand its footprint in the competitive electrical steel market. This move reflects a strategic effort to harness the synergies between JSW and JFE, driving innovation and growth in the sector.