Japan’s JFE Steel Corporation Limited has invested around $837.77 million to pick up a 25 percent equity stake in JSW Kalinga Limited, a subsidiary of India’s JSW Steel Limited, according to a regulatory filing on Wednesday, April 1.
This is the first phase of the investment and in the second phase JFE Steel Corporation will invest an equivalent amount to acquire an additional 25 percent in JSW Kalinga Limited.
Thereafter, JSW Kalinga Limited will become a 50:50 joint venture of JSW Steel Limited and JFE Steel Corporation, as part of an agreement between the two companies inked in December 2025.
Under this agreement between the two companies, the joint venture will take control of operations of Bhushan Power and Steel Limited (BPSL), which was acquired by JSW Steel Limited in 2019 through the bankruptcy resolution process.
As per the announcement made by JSW Steel Limited in December last year, the JSW Steel- JFE Steel joint venture plans to expand BPSL’s crude steel capacity to 10 million mt per year, from 4.5 million mt per year at present, while the JV also includes a captive iron ore mine.
The cross-border investment by the Japanese steel company has already been approved by India’s fair trade regulator, the Competition Commission of India (CCI).