India JSW to acqurie Lucchini SpA Italy

2017-08-29

Aug. 29, 2017 - After lost the acquisition of Ilva Steel which is the largest steel group in Italy to ArcelorMittal Group this month, JSW Group is reported to be aiming at buying Luccini SpA, the second-largest steel producer in Italy.

A source said that JSW has restarted the acquisition negotiations. In 2014, JSW Group and Cevital Group once bid for Luccini SpA, which changed its name to Aferpi (Acciaierie e Ferriere di Piombino) SpA under Cevital Group. JSW Steel is negotiating with the Cevital Group, aiming to acquire Aferpi, with estimating valuation at $ 100 million (INR 640 crore).

Luccini SpA, located in Piombino, Italy with an annual capacity of about 2.5 million tons, was once owned by Russia's Severstal. The company was heavily cracked in the depression in 2008 and finally was announced to be bankruptcy in 2012, after which the Italian government put it under special administrative supervision until Cevital Group took over it.

JSW Group has been hoping to promote the steel produced in India to EU market through the production line of Lukini SpA.