JSW Steel and Piramal to jointly bid for Bhushan Steel, as JFE Steel opts out, says source

Besides JSW Steel, Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel and are said to be in race for Bhushan Steel, which is undergoing insolvency proceedings under the Insolvency and Bankruptcy code.

JSW Steel and Piramal Enterprises are bidding jointly for Bhushan Steel after Japanese company JFE Steel Corp walked out of the alliance, a source in the know of the matter said.

Steel rolls at a steel plant in Maharashtra. (Livemint photo)

JSW Steel had roped in its Japanese business partner JFE Steel and Piramal Enterprises to bid jointly for Bhushan Steel, the maker of auto-grade steel in India undergoing insolvency proceedings for non-payment of dues.

“JFE has walked out. JSW Steel and Piramal Enterprises will now bid for Bhushan Steel,” the source said requesting anonymity.

The bid for Bhushan Steel closes on Saturday.

E-mail queries sent to JSW Steel and other two companies to seek response remained unanswered.

Besides JSW Steel, Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel and are said to be in race for Bhushan Steel.

Asked if JSW Steel could lower its bid as Japanese partner has opted out now, the source said, “JSW is in expansion mode, no matter one partner has gone, JSW can even increase the bid along with Piramal. It will be a 50:50 partnership now”.

Liquidation value is the minimum value set for a stressed asset by the committee of creditors.

According to Bhushan Steel’s website, the company is the third largest secondary steel producer in the country with an existing steel production capacity of 5.6 million ton per annum.