The Competition Commission of India (CCI) on Thursday approved the acquisition of over 96 per cent stake in Jindal Power by Worldone. Earlier in July, Jindal Steel & Power Limited (JSPL) had announced receiving the Rs 7,401-crore revised offer from Worldone Private Limited to acquire the 96.42 per cent stake in Jindal Power Ltd (JPL).
The company had informed that out of the Rs 7,401 crore, Rs 3,015 crore will be paid in cash, while the balance Rs 4,386 crore will be settled by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL.
Part of O P Jindal Group, JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
Worldone Private Ltd is a private company owned by the Promoter Group of JSPL, managing and holding investments across various listed and unlisted companies.
In a tweet, CCI said, “The Commission approves acquisition of 96.42% equity shareholding in Jindal Power by Worldone.”
The proposed combination is in line with JSPL’s strategic objective to bring down its debt and to reduce the firm’s carbon footprint as part of its broader ESG (Environmental, Social and Governance) objectives, as per a combination notice filed with the regulator.
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Minister of State (MoS) Faggan Singh Kulaste said the focus will also be on finding new markets as the production of steel continues to grow in the country.As per the National Steel Policy 2017, the government has set a target to ramp up the country’s crude steel production output to 300 million tonnes (MT) by 2030.
”The goal is to build ambition among corporate and government bodies to support India’s transition to net-zero by 2070,” group chairman, Sajjan Jindal said in a media statement on Monday.