JSW Steel in race for Italian giant

Suresh P Iyengar Mumbai | Updated on January 16, 2018



To pick up 15-20% stake in consortium bidding for Ilva, Lucchini SpA

Nearly two years after shelving plans to acquire Italy’s two biggest steel plants, Ilva and Luchhni SpA, JSW Steel has decided to partner a consortium of bidders led by state-run Cassa Deposit e Prestiti, for the Ilva plant.

JSW Steel Managing Director Sajjan Jindal and a 15-member team of senior technicians has been ascertaining the prospects of buying a stake. The Italian government is now willing to offer a minority stake in the 10-mtpa plant to JSW Steel at a valuation below $400 million, sources said.

JSW Steel will pick up a 15-20 per cent stake in the consortium from Turkish steel-maker Erdemir, which backed out just before the bid was placed by the consortium, they added.

The world’s largest steel-maker, Luxembourg-based ArcelorMittal, is also leading a consortium to acquire a stake in the troubled Italian steel companies.

The Ilva plant was hit by a scandal for flouting environmental norms; Lucchini went bust in 2012. Both have been placed under ‘special administration’ by the Italian government to avoid closure.

Published on October 16, 2016

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