Mahindra Ugine sells 49 steel biz to Sanyo and Mitsui AZB JSA Khaitan Clifford and Herbert advise

Mumbai-based Mahindra Ugine Steel Company (Musco) has agreed to sell 49 percent of its steel business to Japan’s Sanyo Special Steel Co and Mitsui & Co for Rs. 187 crore ($ 37 million)..In a two-tiered transaction, Musco will first sell its steel business to a wholly owned subsidiary. It will then sell 29 percent of the subsidiary to Sanyo for Rs. 111 crore ($22 million) and 20 percent stake to Mitsui & Co for Rs. 76 crore ($15 million), thus making it a majority-owned JV company for Musco, reports VCCircle..AZB & Partners advised Mitsui with a team led by Partner Aditya Vikram Bhat while Tokyo office of Clifford Chance acted as International legal counsel for Mitsui..J. Sagar Associates advised Sanyo with a team led by Partners Akshay Chudasama, Manisha Kumar and Ashoo Gupta along with Senior Associates Manav Raheja and Jamshed Bhumgara. The Tokyo office of Herbert Smith acted as International legal advisors for Sanyo..Khaitan & Co. advised Musco with a team led by Partner Vaishali Sharma..VCCircle reports, Musco is expected to drive general management while Sanyo will lead the manufacturing function and Mitsui will support the marketing function of the joint venture..Sanyo’s technical assistance will enable the venture to strengthen and differentiate its product portfolio with the introduction of new products for niche and emerging market segments in India – namely, oil & gas, power and engineering industries. Mitsui will help the company strengthen its sales and marketing footprints in the niche and emerging segments, as well as in the existing alloy steel market in India.