Jindal Steel has increased its bid for a struggling Italian steelmaker Acciaierie d’Italia (ADI), to approximately EUR 4 bln (USD 4.17 bln), aiming to outbid competitors from Azerbaijan, Bloomberg reported, citing sources familiar with the matter.
The Indian steelmaker’s latest offer to the Italian government includes a EUR 1 bln (USD 1.04 bln) payment for the assets, split equally between cash and inventories, along with EUR 3 bln (USD 3.13 bln) in planned investments to modernize the Taranto steel plant.
Once one of Europe’s largest steelmakers, the company, formerly known as Ilva, faced years of controversy and disputes. Currently under state administration, the Taranto facility has been operating at a reduced capacity of around 2 mln tons per year, well below its peak of 10 mln tons. The Italian government is looking for a bidder that can restore production as close as possible to full capacity.
Prime Minister Giorgia Meloni’s administration is expected to select a winning bid in the coming weeks. The sale process was initiated after a dispute with ArcelorMittal resulted in the company returning control of the plant to the state. Other bidders include Bedrock Industries Management and a consortium of Baku Steel Co. and Azerbaijan Investment Co.
Jindal previously submitted a EUR 2 bln (USD 2.08 bln) bid that proposed phasing out blast furnaces, building two electric arc furnaces, and developing a direct reduced iron (DRI) plant with an annual capacity of 6 mln tons. Meanwhile, Baku Steel reportedly offered around EUR 1 bln (USD 1.04 bln) for the assets, according to Italian newspaper Il Messaggero.
1 USD / 0.95 EUR