Japanese steel producers Sanyo Special Steel Co. (Sanyo) and Mitsui & Co. (Mitsui) have entered into a definitive agreement with Mahindra Ugine Steel Co. (MUSCO), an Indian special steel manufacturer belonging to Mahindra Group, to jointly establish a joint venture in India for manufacturing and sales of special steel, for which a further increase in demand is expected in India in the medium and long term, according to a joint statement from the two Japanese companies.
MUSCO will thus transfer its special steel division into a newly-established wholly-owned subsidiary. After the transfer, Sanyo and Mitsui are planning to acquire shares in the subsidiary, thereby forming the joint venture. The transaction is subject to the receipt of regulatory approvals by the relevant authorities. MUSCO, Sanyo and Mitsui will hold respective stakes of 51 percent, 29 percent and 20 percent in the joint venture.