CCI approves Nippon Steel’s ₹4,300 crore move to fully acquire Krosaki

India’s competition watchdog has cleared Japanese steel major Nippon Steel Corporation’s plan to acquire the remaining 53.4% stake in Krosaki Harima Corporation, paving the way for the company to take full ownership of the refractory products maker.

With the approval from the Competition Commission of India (CCI) on Tuesday, January 6, 2026, Nippon Steel will increase its holding in Krosaki from the existing 46.6% to 100%. The transaction will be executed via a tender offer, scheduled to commence in early February 2026, followed by a potential squeeze-out process. The regulator confirmed the transaction meets all required competition norms under Indian law.

Nippon Steel, led by President and COO Tadashi Imai, has been aggressively expanding its global industrial footprint. In India, the company operates across several verticals, including the manufacturing of tubes and pipes, processing automotive cold-rolled steel sheets, and producing crankshafts and auto components. The full acquisition of Krosaki is a strategic move to strengthen upstream integration, specifically in securing the supply of critical refractories used in the company’s extensive steelmaking operations, including its AM/NS India joint venture.

Krosaki Harima, listed on the Tokyo Stock Exchange, is a critical supplier to high-temperature industries. Through its Indian affiliates, it provides refractories to the iron, steel, aluminium, cement, power, copper, and lime sectors.

The transaction follows Nippon Steel’s initial announcement in August 2025. While the deal was originally valued at 75.7 billion yen (approximately ₹3,500 crore at 2025 rates), current market valuations and exchange rates as of January 2026 place the transaction value at approximately ₹4,345 crore.

The move aligns with Nippon Steel’s 2026–2030 Management Plan, which prioritizes overseas growth and vertical integration to streamline operations across its global value chain.

Summary

The CCI has approved Nippon Steel’s ₹4,345 crore (75.7 billion yen) plan to acquire the remaining 53.4% stake in Krosaki Harima. This deal, set to begin its formal tender process in February 2026, allows the Japanese steelmaker to take full ownership of its key refractory supplier, bolstering its industrial infrastructure in India and supporting its long-term global integration strategy.

Frequently Asked Questions (FAQs)

Q1: What is the timeline for shareholders? 

The tender offer is scheduled to commence in early February 2026, with a standard 20-business-day window for tendering shares.

Q2: How does this affect Krosaki’s listing?

 Following the potential "squeeze-out" of minority holders, the company is expected to be delisted from the Tokyo Stock Exchange later this year.

Q3: Does this impact AM/NS India? 

Directly. As Nippon Steel expands the Hazira Works and develops the Rajayyapeta integrated steel works, a wholly-owned Krosaki ensures a steady supply of refractories for these massive capital projects.