Supreme Court Nullifies JSW Steel-Bhushan Power Deal

India's Supreme Court has rejected JSW Steel's ₹19,700 crore acquisition plan for Bhushan Power & Steel, citing violations of the Insolvency and Bankruptcy Code, including improper payment structures, delays, and malafide intent by JSW Steel. The court ordered the liquidation of Bhushan Power, nullifying what would have been JSW's largest acquisition. This decision threatens a 10-15% production hit and a roughly ₹4,500 crore annual EBITDA loss for JSW Steel, as Bhushan Power contributed significantly to its capacity and earnings. JSW Steel's share price plunged over 6% following the verdict. The ruling also impacts major creditors like State Bank of India and Punjab National Bank, and was influenced by ongoing investigations into fraud and money laundering involving Bhushan Power’s former promoters, as well as delays from asset attachments. JSW Steel has announced it will review the Supreme Court’s order with legal counsel before determining next steps.