JSW Steel, Cevital submit final bids for assets of Italy's Lucchini

NEW DELHI: Having placed its binding offer to acquire Lucchini's core assets, JSW Steel is now waiting to hear from the Italian steel-maker for making a foray into the European market.

"We have placed the binding bid to acquire the finishing lines of Lucchini more than a month ago. Now, they have to get back to us," JSW Steel's Joint Managing Director and Group CFO Seshagiri Rao told PTI.

Rao, however, did not divulge the details of the bid. JSW Steel Chairman and Managing Director Sajjan Jindal had earlier said the cost of Lucchini acquisition would be sub-USD 100 million.

JSW Steel, which has been on an acquisition spree in the recent times, intends to use the 1.3 million tonnes per annum finishing line of Lucchini for processing steels manufactured in its facilities in India for sale in the European market.

An Algerian steel maker is also reportedly in the race. Lucchini, Italy's second-largest steel plant by capacity, was declared insolvent in 2012 and placed under special administration after plunge in European demand for steel since 2008.

It is engaged in producing speciality long products like rolling mills manufacturing for European railways, bars for specialised auto industry and wire rod mills.

JSW Steel's interest on acquiring Lucchini stems from its aim of having an overall steel capacity to 40 mtpa by 2025 from 14.3 mtpa now.

Apart from acquiring a couple of assets in recent times, the company proposes to raise capacity of its Bellary plant in Karantaka by six mtpa to 16 mtpa.