JSW Steel in talks to buy Welspun unit for up to Rs. 1,000 crore.

JSW Steel, India's third-largest steel maker, has begun talks to purchase smaller rival Welspun Maxsteel for about 1,000 crore, two people familiar with the development said, a move aimed at sourcing cheaper raw material, cutting production costs and strengthening presence in the northern and western market.

'Yes, both companies are talking to each other for a deal,' one of the people quoted above said. 'It could be in the range of roughly 1,000 crore,' the second person said. However, Welspun chairman BK Goenka denied that talks were currently on. 'We have been talking to them in the past.'

ET