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JSW Steel eyes assets of Stemcors

JSW Steel eyes assets of Stemcors

Jindal Steel and Power and JSW Steel are eyeing stake in the British steel trader Stemcor’s Indian iron ore assets. JSW is reportedly holding discussion with
Stemcor on this matter.

Stemcor appointed Goldman Sachs to find a buyer for its Indian assets which include a iron ore mine and iron processing facilities in the state of Odisha, valued by an industry source at about $700-750 million.

Stemcor, the world’s largest independent steel trading company and the fifth-largest private company in Britain is undergoing a restructuring phase.

JSW Steel is eyeing stake in Stemcor’s assets because the former’s business strategy is to increase its backward integration in securing iron ore and coking coal to feed its steel plants in India. The company continuously scans and evaluates various proposals of strategic interest.

Stemcor is controlled by the Oppenheimer family and it has been urged by its lenders to sell some of its assets to raise cash, since it failed to refinance a $850 million syndicated loan that was due to mature in May.

Stemcor trades between 15 million and 20 million tonne a year of steel and steel raw materials, including coal and iron ore. The firm announced a 5.1 billion pounds ($7.84 billion)turnover last year.


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