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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.
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