The purchase of the Italian stainless steel producer Acciai Speciali Terni (AST) enters a new phase. Following a review by JP Morgan on behalf of Thyssenkrupp, four potential buyers have been identified: the Italian steelmaker Arvedi and re-roller Marcegaglia, Korean POSCO and Chinese Baowu.
Marcegaglia visited AST’s facilities last week on Monday, followed by Arvedi the day after. As of now, POSCO’s and Baowu’s on-site inspections are yet to be scheduled.
Experts are still not sure of the outcome, but they agree it is unlikely that the Italian players will partner and share ownership of AST. They will remain competitors as there is a lot at stake. The company that would step into AST’s board would acquire a substantial market power and an advantage over its competitor.
Based in Umbria, AST accounts for 15 percent GDP of the region and employs 3,000 people, which explains why the Italian government would want Terni to remain Italian, possibly providing financial support to the acquisition.
The first financial offers should come later this week, while the purchase of Acciai Speciali Terni should be finalized by the end of the third quarter. It has been estimated that the acquisition will cost approximately €1 billion, which does not include previous debts or costs related to green transition or waste disposal.
Acciai Speciali Terni’s profits are recovering after 2020. In May the producer announced 58 percent increase in bar forging sales, 48 percent increase in hot rolled metal sales, 18 percent increase in cold rolled metal sales and two percent increase in pipes.