Lucchini chooses Cevital's offer for Piombino complex over JSW Steel's

On Tuesday, November 25, Italy's second-largest steelmaker Lucchini stated that it will ask the Italian government for permission to sell its complex in Piombino in Tuscany to the Algerian conglomerate Cevital.
 
The company received two binding offers for its core assets in Piombino, one from Cevital and the other from Indian steelmaker JSW Steel, but said the Cevital offer was the more attractive one because, among other things, the Algerian company said it would preserve all 2,000 jobs at the Piombino complex. Cevital offered €400 million. Its plan includes the acquisition of three rolling mills and the construction of a fourth rolling mill, as well as the construction of two electric furnaces (the first within 18 months, the second within two years) in order to resume full-cycle production. In addition, the group led by Issad Rebrab said it will reclaim an industrial area at the Piombino site and then build an agro-industrial plant at the location. The formal green light from Italy's industry ministry for Cevital's offer is expected to be given in the coming days.
 
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 tough economic conditions.