India-based JSW Steel is ready to buy Lucchini assets

India's largest private company, JSW Steel Ltd, has made an official offer to Lucchini to buy its assets. At the moment, the proposal is being studied by Lucchini's management and the company has not yet provided comments on the details of the proposal.

As you know, Lucchini was the third largest producer of metallurgical products in Italy, behind only Gruppo Riva and Techint. But in 2012, she went bankrupt, and the government introduced the so-called "special administration" into the company. In April 2014, the company was even forced to stop blast furnace production.

Thus, at the time of the termination of the filing of applications, five applicants expressed their desire to buy the assets of the Italian manufacturer. In addition to the Indian giant, Duferco Italia, Steel Mont Limited, Acciaierie Venete and Elti will participate in the competition. But it was the Indian company that offered the most complete package. For example, JSW Steel is interested in buying a plant in Piombino, rolling lines, a service company and even a 69.27% ​​stake in GSI Lucchini itself. Other buyers showed more modest appetites.

The Indian giant has been named the most likely buyer as it has declared its willingness to make serious social commitments. The volume of the package of the offered proposal also plays an important role. Earlier it was also noted that the Italian government can sell Lucchini's assets for just 1 euro, if only the investor resumes the efficient operation of the company and guarantees social protection to the staff.