Turkish steelmaker reportedly teaming up with Arvedi for Ilva bid

Tuesday, 21 June 2016 16:31:49 (GMT+3)   |   Istanbul
       

There are rumors that potential bidders for the Italian steelmaker Ilva, namely Turkish integrated steelmaker Erdemir Group and the Italy-based Arvedi, are planning to form a partnership alongside with Italian companies Delfin and Cassa Depositi e Prestiti (Cdp) as part of their bid to acquire Ilva, according to Italian media reports. 

Reports suggest that the new company will have a share capital of between €900 million and €1 billion, with Erdemir having 35 percent of shares, Cassa Depositi e Prestiti 35 percent, Delfin 20 percent and Arvedi 10 percent. Erdemir Group and Arvedi will be the industrial partners, while Cdp and Delfin will be the financial partners. 

The deadline for binding offers for the acquisition of the whole steelmaking group was extended to June 30 and details regarding the partnership are expected to be made clear by then. An ArcelorMittal-Marcegaglia partnership is the other bidder in the acquisition process.

For now, both bidders forecast that Ilva will produce 6 million mt in the next three years, less than its annual designed capacity of 8-9 million mt.