 "JSW Steel's Bellary plant in Karnataka")
JSW Steel Ltd, part of the O P Jindal Group, has acquired Praxair India Private Limited’s entire 74 percent stake in their joint venture company, JSW Praxair Oxygen Private Limited (JPOPL), for Rs 240 crores. “JSW Steel Limited has executed a share purchase agreement with Praxair India Private Limited to acquire their entire shareholding of 74 percent in JSW Praxair Oxygen Pvt Ltd for a cash consideration of Rs 240 crores,” said the company in a BSE filing today.
Post the acquisition of Praxair India’s share, JPOPL would become a wholly owned subsidiary of JSW Steel, which at present owns 26 percent stake in the JV.
JPOPL is engaged in the business of production and sale of industrial gases such as oxygen, nitrogen and argon and has set up two air separation plants, each with a capacity of 2500 tonnes per day at Toranagallu in Bellary district of Karnataka.
JSW Steel currently sources industrial gases from JPOPL among others at prices based on long term contracts. The said acquisition is strategic in nature as it will provide the company the benefit of backward integration of this critical input.
Deloitte Touche Tohmatsu India LLP and Bharucha & Partners, Advocates and Solicitors, carried out financial and legal due diligence respectively for JSW Steel.
