Jindal Group Eyes European Expansion with Vitkovice Steel Acquisition Vitkovice Steel, a key player in the Czech Republic's steel sector, will provide Jindal Group with a valuable foothold in Europe.
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In a strategic move to bolster its global footprint, India's Jindal Group is in advanced talks to acquire a 100 percent stake in Czech-based Vitkovice Steel. The deal, facilitated through the Jindal Group's subsidiary, Jindal Steel International, is expected to be finalized by the end of the current fiscal year, as per Business Standard. This acquisition marks a significant milestone for the Naveen Jindal-led business conglomerate, representing its first foray into the European market. While Jindal Group already has a strong presence in regions such as Australia, Mozambique and Oman, this move underscores its ambition to expand its reach within the European steel industry.
"The management of the two sides are in active talks for the deal," sources close to the matter revealed to BS. "Jindal Group will acquire a 100 percent stake in Vitkovice Steel, making this its first European acquisition." The deal size could be of about 150 million euros or around INR1,000 crore, they said.
Vitkovice Steel, a key player in the Czech Republic's steel sector, will provide Jindal Group with a valuable foothold in Europe. This is especially important as Europe intensifies its efforts to promote green steel through initiatives like the carbon border adjustment mechanism (CBAM), which imposes taxes to incentivize low-carbon steel production. The acquisition aligns with Jindal Group's long-term goals to enter eco-friendly steel manufacturing.
Additionally, Jindal Group is making strides in green steel production through Vulcan Green Steel (VGS), its hydrogen-based steel manufacturing unit in Oman. This project aligns with global trends favoring sustainable and carbon-neutral industrial practices.
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