Indian steelmaker
JSW Steel and Algeria-based Cevital have submitted their final bids for the Piombino
steelmaking complex owned by troubled Italian steelmaker Lucchini.
Lucchini announced today, November 19, that special commissioner Piero Nardi will analyze the bids and submit an initial report to an Italian government supervisory committee in Rome on November 21.
Commenting on the final bids, Piombino's mayor Massimo Giuliani said, "It seems like there are no big developments compared to the initial offers, and so Algeria-based Cevital should be the favorite due to greater solidity in terms of industrial development, even if diversified". Labor union leaders also agreed, stating that, if the offers remained the same, Cevital's would be the best.
In late 2012, after being declared insolvent Lucchini was placed under "special administration", a procedure designed to save large companies and avoid big job losses. In 2005, Russian steel producer Severstal had acquired Lucchini, previously owned by the family of the same name. Severstal has since sold a majority stake to its owner, Russian businessman Alexei Mordashov, to facilitate the sale of Lucchini. The disposal of the troubled Italian steelmaker has proven very difficult in the context of falling steel prices and difficult economic conditions.