India’s leading steelmaker to acquire additional economic interest in M Res NSW for USD 60 million
DSIJ Intelligence-1 / 18 Sep 2025/ Categories: Mindshare, Trending
The stock is up by 27.5 per cent from its 52-week low of Rs 879.60 per share.
JSW Steel Ltd has acquired an additional economic interest in M Res NSW HCC Pty Ltd for a total of USD 60 million. This acquisition was executed through JSW Steel's wholly-owned subsidiary, JSW Steel (Netherlands) B.V. The transaction involves two parts: a purchase of existing non-voting Class B shares for USD 24 million and a subscription for new non-voting Class B shares for USD 36 million. This deal increases JSW Steel's direct economic interest in M Res NSW from 66.67 per cent to 83.33 per cent.
The acquisition is a strategic move for backward integration, aiming to secure coking coal supply, which is a key raw material for steel production. The USD 36 million from the new share subscription will be used by M Res NSW to purchase an additional 6 per cent share in Golden M NSW Pty Ltd. Since Golden M owns the Illawarra Metallurgical Coal mines in Australia, this cascade of transactions will increase JSW Steel's effective economic interest in those mines from 20 per cent to 30 per cent. As a direct result, JSW Steel's off-take rights—the right to purchase the coking coal produced—will also increase to 30 per cent, ensuring a more stable supply chain.
The transaction is subject to customary conditions and is expected to be completed in the third quarter of fiscal year 2026. While M Res NSW is a joint venture, certain aspects of the transaction, including the new share subscription and the increased off-take rights, fall under related party transactions. However, JSW Steel has confirmed that these transactions were conducted at fair market value and are therefore considered to be at arm's length. Additionally, JSW Steel has an existing obligation to invest up to USD 50 million in M Res NSW in 2030, and this latest acquisition will increase that potential future commitment to up to USD 75 million. The deal has already received the necessary approvals from the Australian Foreign Investment Review Board (FIRB).
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About the Company
JSW Steel is the flagship business of the USD 23 billion JSW Group and India’s leading integrated steel producer with a consolidated capacity of 35.7 MTPA, including 1.5 MTPA in the United States. Ongoing expansions will raise capacity to 43.4 MTPA over the next three years. Its Vijayanagar facility in Karnataka is India’s largest single-location steel plant. A recognised global leader in sustainable steel production, JSW is a seven-time Steel Sustainability Champion (World Steel Association) and part of the Dow Jones Sustainability Index.
Over 80 per cent of its Indian capacity is Responsible Steel™ certified. The company has committed to net-zero carbon emissions by 2050 and aims to source 100 per cent of its power from renewable energy by 2030. The company falls under the BSE 100 Index with a market cap of over Rs 2.7 lakh crore. The stock is up by 27.5 per cent from its 52-week low of Rs 879.60 per share.
Disclaimer: The article is for informational purposes only and not investment advice.