Nippon Steel Corporation and JFE Steel Corporation have approached CCI for the approval to acquire stakes in Queensland’s Blackwater Coal Mine. These transactions are essential for strengthening their access to coking coal, which is crucial for steel production.
Dec 28, 2024
Nippon Steel Corporation and JFE Steel Corporation, two leading global steelmakers, have approached the Competition Commission of India (CCI) for approval to acquire stakes in Queensland’s Blackwater Coal Mine in Australia.
These transactions aimed at strengthening their access to coking coal which is crucial for steel production. Nippon Steel plans to acquire a 20 percent interest in the mine while JFE Steel intends to take a 10 percent stake with similar rights.
Both acquisitions are independent but strategically aligned to ensure supply chain reliability. As outlined in their filing to CCI, the transactions are referred to as the “Proposed Nippon Transaction” and “Proposed JFE Transaction.”
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The filing assures the CCI that these transactions will not result in adverse effects on competition in India, citing their limited market shares in the relevant coal and steel markets. For India’s expanding steel industry, securing reliable raw material sources like coking coal is a strategic priority, making these acquisitions vital for both Nippon Steel and JFE Steel as they strengthen their positions in a rapidly growing market.
