On July 27, 2010, JFE Steel Corporation,
In a statement issued by JFE Steel it said, ''JFE Steel will acquire a stake in JSW Steel by subscribing to a preferential allotment at a cost of Rs48 billion. The company plans to acquire 14.99 per cent voting rights and will make additional investments if the forthcoming acquisition does not reach this figure due to reasons including but not limited to possible fluctuations in JSW Steel's share price.''
For Tokyo-based JFE Steel, this is the second major overseas acquisition in two days. On July 26, 2010, the company announced to have acquired 24 percent stakes in Pancheng Yihong Pipe, a
Both the companies entered into a long term agreement. Through this acquisition, JSW would be able to get into the growing Indian market at the same time JSW Steel would have access to funds for expansion and technology from JFE steel.
JFE Steel would play a major role in building up JSW Steel plant in