Latest News | CCI Clears Nippon Steel, JFE Steel's Proposal to Collectively Acquire Stakes in Australian Coal Mine
Get latest articles and stories on Latest News at LatestLY. Fair trade regulator CCI on Tuesday said it has approved a proposal of Japanese steelmakers Nippon Steel and JFE Steel to collectively acquire a 30 per cent stake in Queensland's Blackwater coal mine.
New Delhi, Feb 18 (PTI) Fair trade regulator CCI on Tuesday said it has approved a proposal of Japanese steelmakers Nippon Steel and JFE Steel to collectively acquire a 30 per cent stake in Queensland's Blackwater coal mine.
"The proposed combination envisages the acquisition of 20 per cent and 10 per cent interest in Blackwater Coal Mine by NS Blackwater Pty Ltd and JFE Steel Australia Pty Ltd, respectively," the Competition Commission of India (CCI) said in a release.
NS Blackwater is a special purpose vehicle and is ultimately owned by Nippon Steel Corporation, while JFE Steel Australia (BW) Pty is owned by JFE Holdings, Inc.
JFE Steel Corporation, one of the world's leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003.
Also Read | What Is Chameleoning? All About the New Gen Z Dating Term You Might Be Unknowingly Living.
Blackwater Coal Mine (BW Coal Mine) is an open-cut mine in Queensland, Australia, which has been operating since 1967. In India, the BW Coal Mine supplies coking coal by way of imports.
In August last year, JFE Steel said that it has signed an agreement with Whitehaven Coal, an Australian supplier of coking coal for steelmaking, to acquire a 10 per cent interest in the Blackwater coal mine, along with a long-term offtake agreement for coal supply from the mine.
Similarly, Nippon Steel said that it had entered into an equity participation agreement with Whitehaven Coal to acquire a 20 per cent stake in the Blackwater coal mine.
In addition, Nippon Steel has entered into long-term coal offtake rights agreement with Whitehaven Coal Ltd (WHC), under which WHC will supply steelmaking coal produced at the BW Coal Mine to Nippon Steel.
Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)