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CCI approval sought to buy pellet maker BRPL - Report

Steel News - Published on Tue, 16 Jan 2018

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Financial Express reported that the project management arm of Sajjan Jindal-led JSW Group and two other companies will acquire Brahmani River Pellets (BRPL) after Tata Steel’s deal to buy the Odisha-based pellet maker collapsed in October last year. JSW Techno Projects Management and Thriveni Pellets will pick up 49% each in BRPL from the latter’s holding company Aryan Mining and Trading Corporation (AMTC), while Mitsun Steels will buy 2%.

These companies have sought the approval of the Competition Commission of India (CCI), stating the proposed deal won’t cause any appreciable adverse effect on competition in any relevant market in India.

While the application doesn’t mention the deal value, sources told FE that JSW Techno could cough up INR 500-600 crore for its 49% stake in BRPL. Assuming that both Thriveni and Mitsun might have valued BRPL at the same level, the total deal size could be roughly around INR 1,100 crore.

Tata Steel had in December 2016 announced to buy BRPL for INR 900 crore, before terminating the agreement in October 2017. BRPL has capacity to produce around four million tonne of pellet and has an iron ore processing facility with similar capacity in Odisha.

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Posted By : Nanda Koijam on Tue, 16 Jan 2018
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