JSW Steel is planning to acquire Italian steelmaker Lucchini SpA ‘for less than US$100 million, according to Indian media reports.

JSW claims that it will start operations at the Lucchini site before the year end and that it will not be taking on any debt or require any fund raising, according to Sajjan Jindal, JSW’s chairman.

Lucchini is Italy’s second largest steel plant in capacity terms. The company was declared bankrupt in 2012 after the 2008 financial crash and used to manufacture long products for the railways industry, specialised steel for automotive and wire rod.

JSW is planning on restructuring the business.

Also on the agenda for JSW is the purchase of Italy’s 10Mt/yr Ilva steel plant. Major investment is envisaged here.

On a more general note, Jindal claims that JSW is interested in further acquisitions elsewhere in the world, but is looking for acquisitions in India because, he says, India is the best place to produce steel.

Source: Economic Times/India Times