The Russian steelmaker Severstal has announced that it has acquired the remaining 20.2 percent stake in its Italian subsidiary Lucchini SpA from the Lucchini family, thus becoming the 100 percent owner of the company.
The price of the transaction has not been disclosed but, according to reports, it is estimated to be around €100 million, i.e., with a 37.5 percent discount on the put option price initially fixed at €160 million.
Between 2005 and 2007, Severstal acquired from the Lucchini family a total stake of 79.82 percent in Lucchini SpA. Currently, with a 100 percent stake in the company, Severstal is continuing to look for a buyer for its Italian asset. However, Severstal does not now appear to be in a hurry to sell Lucchini, and it is currently thought that any sale will not be concluded before June.
In February, Severstal confirmed that it was continuing "to explore all options to ensure the most appropriate structure for the development of Lucchini, including a possible sale of its ownership interest to a strategic partner."
As SteelOrbis previously reported, Severstal has been in talks with several investors to make over its share in Lucchini. Lately, rumors have been heard of interest from Indian giants ArcelorMittal and Tata Steel, while the possibility of a role for Italy's Riva Group and China's Baosteel seems to have vanished. In addition, according to market rumors, the Ukrainian mining and steel producing company Metinvest Holding may also be interested in the acquisition.
In 2009, Severstal's Italian subsidiary Lucchini registered the biggest output decrease among companies in the group, with its crude steel production amounting to 1.746 million mt - down 42 percent year on year. However, in Q4 2009 its production figures improved significantly, with crude steel output increasing by 45 percent to 535,005 mt compared to Q3. Analysts say that 2.5 million mt-capacity Lucchini has a debt of $1.4 billion.