NewsOrders & DealsCompetition Commission Approves Nippon Steel's Proposal to Acquire Krosaki Harima CorporationCompetition Commission Approves Nippon Steel's Proposal to Acquire Krosaki Harima Corporation
The Competition Commission of India has approved Nippon Steel Corporation's acquisition of the remaining 53.4% stake in Krosaki Harima Corporation, increasing its ownership from 46.6% to 100.0%. The transaction, valued at ₹75.7 billion yen and announced in August last year, will be executed through a tender offer and potential squeeze out mechanism. Both companies operate significantly in India, with Nippon Steel manufacturing automotive components and steel products, while Krosaki produces refractory products for various industries including steel, cement, and power sectors.
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The Competition Commission of India has granted approval to Japanese steelmaker Nippon Steel Corporation's proposal to acquire the remaining stake in Krosaki Harima Corporation, marking a significant consolidation move in the steel and refractory products sector. The regulatory clearance paves the way for Nippon Steel to gain complete control over its strategic partner.
Transaction Details
The approved acquisition involves Nippon Steel purchasing the remaining 53.4% shareholding in Krosaki Harima Corporation through a tender offer and potential squeeze out mechanism. Currently, Nippon Steel holds a 46.6% stake in the Japanese company, and upon completion of this transaction, its ownership will increase to 100.00%.
| Parameter: | Details |
|---|---|
| Current Nippon Steel Stake: | 46.6% |
| Stake to be Acquired: | 53.4% |
| Post-Transaction Ownership: | 100.0% |
| Transaction Method: | Tender offer and potential squeeze out |
| Deal Value: | ₹75.7 billion yen |
Company Operations in India
Both companies maintain significant business operations in the Indian market across different segments. Nippon Steel's Indian operations encompass manufacturing tubes and pipes, processing automotive cold rolled steel sheets, crankshafts, and auto-parts. The company also engages in importing and selling various steel products in the domestic market.
Krosaki Harima Corporation, operating through its affiliate entities in India, specializes in manufacturing and selling refractory products. The company serves multiple industrial sectors including:
- Iron & steel making industry
- Lime and steel sectors
- Aluminium production
- Power generation
- Cement manufacturing
- Copper industry
Strategic Background
Nippon Steel Corporation first announced its intention to acquire all shares of Krosaki Harima Corporation in August last year. The tender offer, valued at ₹75.7 billion yen, represents part of Nippon Steel's broader strategy to consolidate control over Krosaki, in which it already maintained a significant shareholding position.
Regulatory Framework
The Competition Commission of India's approval was necessary as the transaction exceeds the regulatory threshold requiring antitrust clearance. The CCI monitors such deals to prevent unfair business practices and ensure fair competition in the marketplace. Krosaki Harima Corporation is a publicly listed company on Japanese stock exchanges, making this acquisition subject to various regulatory requirements across jurisdictions.
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