The Competition Commission of India (CCI) approved the proposal to merge Creixent Special Steels and JSW Ispat into JSW Steel on Thursday. The steel maker announced the merger deal in May this year.
At 10:14 am, shares of JSW Steel were trading at Rs 605.75, a decline of 0.4 percent from the previous close on the BSE.
JSW Steel and JSW Ispat are into the manufacturing and selling of steel products, while Creixent Special Steels (CSSL) is in the business of holding investments.
In a tweet on Thursday, the CCI announced the approval decision.
Also read: This restaurant stock gained over 14% so far this month on back of strong Q1 resultsCommission approves amalgamation of Creixent Special Steels and JSW Ispat Special Products with and into JSW Steel"
— CCI (@CCI_India) August 18, 2022
While announcing the merger deal in May, JSW Ispat Special Products mentioned that the firms' proposed merger would result in synergies between them, including through the pooling of financial, managerial, technical, distribution, marketing, and other resources as the companies are in similar and/or complementary businesses.
It further mentioned that the anticipated merger would, among other things, result in cost savings, greater alignment, coordination, and streamlining of the groups' daily activities.
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“The amalgamation will not only increase efficiencies and enhance administrative control but will also create and enhance stakeholders’ value by unlocking the intrinsic value and growth potential for the respective businesses of JISPL, CSSL, and JSW Steel,” Seshagiri Rao MVS, Joint Managing Director and Group CFO of JSW Steel, said in a regulatory filing.
(With inputs from PTI)
(Edited by : Nishtha Pandey)
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