CCI Clears Japanese Steelmakers’ Joint Acquisition in Blackwater Coal Mine

The Competition Commission of India (CCI) has authorized a major acquisition agreement between Japanese steel companies Nippon Steel and JFE Steel. The two firms will jointly obtain a 30% interest in Queensland’s Blackwater Coal Mine, an essential supplier of coking coal for the steel sector.

According to CCI, "The proposed combination envisages the acquisition of 20 percent and 10 per cent interest in Blackwater Coal Mine by NS Blackwater Pty Ltd and JFE Steel Australia Pty Ltd, respectively." NS Blackwater is a special purpose vehicle ultimately owned by Nippon Steel Corporation, while JFE Steel Australia (BW) Pty is owned by JFE Holdings, Inc.

The Blackwater Coal Mine, operating as an open-cut facility since 1967, is essential for supplying coking coal to India via imports. The purchase corresponds with the long-term strategic objectives of both steel manufacturers, guaranteeing a consistent supply of premium metallurgical coal.

In August of the previous year, JFE Steel revealed a deal with Whitehaven Coal to purchase a 10% stake in the Blackwater Coal Mine, along with a long-term offtake contract. In the same way, Nippon Steel entered into an equity stake agreement for 20%, obtaining long-term coal offtake rights from Whitehaven Coal Ltd.

With the rise in global demand for steel, this acquisition bolsters Nippon Steel and JFE Steel’s dedication to ensuring dependable raw material sources, enhancing supply chains, and promoting industrial growth.