JSW Steel has decided to partner a consortium of bidders led by state-run Cassa Deposit e Prestiti, for the Ilva plant. This step has been taken nearly two years after shelving plans to acquire Italy’s two biggest steel plants, Ilva and Luchhni SpA by the company.
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. JSW Steel will pick up a 15-20 percent stake in the consortium from Turkish steel-maker Erdemir, which backed out just before the bid was placed by the consortium. The world’s largest steel-maker, Luxembourg-based ArcelorMittal, is also leading a consortium to acquire a stake in the troubled Italian steel companies.
JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.
