M&A

M&A

Supreme Court scraps JSW Steel’s bid to acquire Bhushan Power: Report

CNBC-TV18  

Publicly listed JSW Steel's plan to acquire Bhushan Power and Steel has been rejected by the Supreme Court. The SC has declared the acquisition as illegal and ordered liquidation of the debt-ridden firm.The ruling cited two key reasons for its decision: JSW’s use of a mix of equity and optionally convertible debentures (OCDs) to complete the takeover - when it should have been executed solely through equity - and a failure to implement the plan within the timeframe mandated under insolvency law.The decision puts a question mark on the acquisition saga that began in 2021, when JSW Steel acquired a 49% stake in BPSL through the IBC route. The acquisition had added a steelmaking capacity of 2.75 million tonnes per annum (mtpa) to JSW's portfolio in Odisha. Later, JSW increased its stake to 83.3% effective October 1, 2021.