JSW Steel To Buy Jindal Saw''s US Plant

For Jindals it is turning out to be a family affair. Sajjan Jindal is all set to buy the steel plate and pipe mill from his elder brother Prithvi Raj. And the family is making sure that it is a win-win situation for both the brothers. According to sources Jindal brothers have agreed that Sajjan Jindal through his flagship company JSW Steel will match the highest bid that comes in for Jindal Saw''s US plant.

Two international steel companies have already conducted due diligence on the pipe plant and will submit their bids shortly. JSW is likely to start its due diligence soon. The deal which is pegged at around $1.2 billion is likely to close by end August.

JSW insiders say that the acquisition of the plate and pipe mill will give a big push to its realisations and profitability. Sajjan Jindal''s gameplan is to export raw steel slabs from Belgaum in Karnataka to the US facility for conversion into plates and pipes.

Slab prices are currently ruling at $550 per tonne while pipe prices are pegged at over $1650 per tonne. No wonder that value additions are likely to be significant.

Group officials say that the final deal could just be a month away, only if JSW backs out from matching the highest bid will the Jindal Saw plant go to any third party. Given the value additions that the plant brings along it is unlikely that Sajjan Jindal will let go of the family jewel.