<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Mahindra Ugine Steel said on Friday its board has approved a slump sale of its steel division to its new unit and agreed to rope in Sanyo Special Steel and Mitsui & Co as joint venture partners for the new unit.<br><br>Sanyo will invest Rs 111 crore in the JV with a 29 per cent stake, Mitsui Rs 76 crore for a 20 per cent stake and the rest will be held by Mahindra Ugine, it said in an exchange filing, but did not provide the value of its own stake.<br><br>"Mahindra Ugine is expected to drive general management, Sanyo will lead the manufacturing function while Mitsui will support the marketing function of the joint venture," it said.<br><br>The JV will help Mahindra Ugine achieve improved productivity and enhance both cost and quality to international standards, the statement said.<br><br>Sanyo expects to strengthen its global growth expectations by having a share of the growing special steel demand in India from this JV, while Mitsui will strengthen its ties with its partner Mahindra Group, the statement added.<br><br>At 12:33 pm shares in Mahindra Ugine, valued by the market at Rs 191.52 crore, were 2.56 per cent down to Rs 57, with volumes 13 times higher than its 30-day average, while the benchmark was down 1.25 per cent.<br><br>(Reuters)</p>