JSW Steel is expected to announce the acquisition of Italy’s second largest steel plant Aferpi by 19 May. Photo: Reuters
Mumbai: JSW Steel Ltd has signed a deal to take over Italy’s second largest steel plant Aferpi for Rs600 crore, a person familiar with the development told Mint.
The deal closure is expected to be announced by 19 May. Aferpi—formerly Lucchini SpA—is currently owned by Algeria’s Cevital.
JSW’s senior officials reached Italy on Friday and an agreement has been signed at Italy’s ministry of economic development, the person said.
The final signing was hurried along by labour union leaders, who wanted Aferpi to enter special administration had the JSW takeover fallen through, reported Platts on 16 May.
Originally owned by Russia’s Severstal, Aferpi has an annual steel production capacity of about 2 million tonnes in Piombino and manufactures special steels used in railway, automobile and earth-moving vehicles, among others.
The acquisition will help JSW Steel to expand its reach in the specialised steel market, especially in the automobile sector.
Aferpi is currently working on projects that involve production of 1 mt of long steel products and revamping of wire rod and bar mills, installation of one electric arc furnace of 1 mt capacity with two continuous casting machines, installation of a new rails- and beams-rolling plant and installation of the second electric arc furnace and the third continuous casting machine.
JSW Steel, in a joint venture with AION Capital, also won the distressed assets of Monnet Ispat in India for Rs2,750 crore.
At 2.37pm, JSW Steel shares were trading 2.39% lower at Rs324.35 per share on BSE.