"Nippon Steel and JFE Steel Seek CCI Approval for Stake Acquisitions in Australian Coal Mine".

Global steelmaking leaders Nippon Steel Corporation and JFE Steel Corporation have approached the Competition Commission of India (CCI) for approval to acquire stakes in Queensland’s Blackwater Coal Mine.

The proposed transactions, seen as strategic investments, aim to strengthen the companies’ access to coking coal, a critical raw material for steel production. Nippon Steel plans to acquire a 20% stake in the mine along with coal offtake rights, while JFE Steel seeks a 10% stake under similar terms. These acquisitions are being pursued independently through special purpose vehicles, NS Blackwater Pty Limited and JFE Steel Australia (BW) Pty Ltd.

Operational since 1967, the Blackwater Coal Mine is a significant supplier of coking coal, including exports to India, where it supports the domestic steel industry.

According to filings under the CCI’s Combination Regulations, the parties assured that the acquisitions would not lead to any appreciable adverse effect on competition (AAEC) in India. They emphasized their limited market share in the coking coal and finished steel production markets and highlighted the presence of numerous domestic and international competitors in these sectors.

Nippon Steel, with operations spanning 15 countries, manufactures products such as automotive steel sheets and tubes in India, serving key industries like automotive and construction. JFE Steel, a global leader in steel production and engineering, also plays a vital role in India’s steel market.

The acquisition underscores the growing importance of securing reliable raw material sources as India’s steel industry expands rapidly. Access to high-quality coking coal is crucial for major steelmakers to meet rising demand, making this move a strategic priority for Nippon Steel and JFE Steel.

HBL