Avendus Capital advises thyssenkrupp AG on the divestment of its Indian electrical steel business for INR 4051 crores

Overview

thyssenkrupp AG, one of the top global diversified industrials group, with a leading position in steel technology, has signed definitive agreements with the Indo-Japanese consortium of JSW Steel and JFE Steel to divest 100% stake in its Indian entity, thyssenkrupp Electrical Steel India Private Limited (“tkES India” or “the Company”) for a consideration of INR 40,514 mn. tkES India is the only manufacturer of top-grade Grain Oriented Electrical Steel (GOES) in India with its facility located in Nashik, Maharashtra.

Avendus Capital acted as the sell side advisor to thyssenkrupp AG on this transaction.

Deal Value

INR 4,051 cr

Service

Mergers & Acquisitions

Sector

Industrials

Date

Oct 2024

We are delighted to have advised thyssenkrupp, a global leader in the steel industry, on this marquee M&A transaction. thyssenkrupp has built a strong technology platform for producing top grade GOES in India which is expected to play a critical role in India’s green energy transition ambitions. We believe that this asset will grow further under the new ownership and will provide a strong impetus to the government’s push for import substitution. It will not only aid in making India more self-sufficient but will also transform India into one of the few global suppliers of top-grade electrical steel.

Koushik Bhattacharyya

Managing Director & Head, Industrials Investment Banking, Avendus Capital

About thyssenkrupp

The company is a pioneer in electrical steel in India with a capacity of 50,000 tonnes per annum and enjoys the unique advantage of being the only domestic producer of top-grade electrical steel in an otherwise import dependent Indian market. Electrical steel is at the core of the power transmission industry with its use in distribution and power transformers and is essential for the success of the energy transition.

www.thyssenkrupp.com