According to media reports, Russian steelmaker
Severstal may sell all or a part of its Italian subsidiary Lucchini, in which it holds a 79.82 percent stake, in the very near future. However, so far there has not been any confirmation from
Severstal itself.
Currently, market players are seeking to understand who will show an interest in buying a stake in Lucchini. Previously, it was considered that the mostly likely buyers of the Italian steel producer would be the Lucchini family, from which in 2005-2007
Severstal acquired the controlling stake, and also Riva Group, the largest steel company in
Italy.
Now, however, market players think it more possible that the giant Chinese steelmaker Baosteel would be interested in the acquisition, as it is already present in
Italy with some offices, and is financially ‘well fitted' as it has suffered less from the crisis than other producers. Some rumors even focus on the world's largest steel company ArcelorMittal, also present in
Italy, even with a plant very close to the Lucchini plant in Piombino (Tuscany).
In addition, due to the social impact any sale of Lucchini would have, politicians and labor unions in
Italy are speculating on who the likely buyers of the plant could be.
Severstal's decision to sell Lucchini could be due to the losses it has incurred connected with the still difficult situation in the European market, which has not experienced the same recovery of demand as either the US or Russian markets. The latest report of Lucchini's performance was issued by
Severstal in November 2009. During the first nine months of the year, Lucchini's revenue was reported at $1.22 billion, down 63 percent year on year, representing the worst performance of any unit in
Severstal's worldwide steel operations. In addition, during the period in question, Lucchini also registered a negative EBITDA of $212 compared to the positive EBITDA of $431 million in the same period of the previous year. In 2008, Lucchini sold 3.3 million mt of steel products for $4 billion, generating 15 percent of
Severstal's total revenue.