Jindal Steel doubles offer for Italian steel maker: report

Indian steelmaker Jindal Steel has doubled its offer for troubled Italian steelmaker Acciaierie d’Italia to about €4billion ($4.2 billion) in an effort to outbid its Azerbaijanian counter, Bloomberg reported, citing people familiar with the matter.

The steelmaker’s revised proposal includes a payment of €1 billion for the assets, and about €3 billion to overhaul the main steel plant in Taranto, the report said, adding that the discussions are private.

The erstwhile Ilva, run by the Italian government, was one of Europe’s largest steelmakers but has been mired in controversy and disputes for years, with its Taranto plant operating at reduced capacity.

Italian Prime Minister Giorgia Meloni’s government may pick a winning bidder in the coming weeks.

A tender for Ilva’s steelmaking assets was launched after a clash with operator ArcelorMittal led to returning control back to the government.

The government is seeking a bidder who will inject sufficient funds to restore production to levels as close as 10 million tons.

Bedrock Industries Management, a consortium comprising Baku Steel Co. and Azerbaijan Co., is in fray.

Jindal earlier offered to invest €2 billion in a proposal that included a gradual closing down of its blast furnace, construction of two electric arc furnaces, and a direct reduced iron plant with a capacity to produce 6 million tons of steel per year, company director of European operations, Narendra Kumar Misra, told Italian daily II Sole 24 Ore.

Baku offered €1 billion for the asset, newspaper Il Messaggero reported this month.

In its latest proposal, Jindal reportedly offered €500 million in cash and about €500 million in inventories.

In June 2017, Arcelor Mittal became the chief shareholder in Ilva. In 2020, the company returned to commissioners’ management and ownership of the Italian state.

On 23 April 2021, then Mario Draghi government infused capital, gaining 38% share and 50% of the voting rights.