Italy’s Minister of Enterprises and Made in Italy (MIMT), Adolfo Urso, has announced there are 15 potential investors for distressed steelmaker Acciaierie d’Italia (ADI), formerly known as Ilva.
ADI’s special administration is progressing with its sales process and is currently evaluating the letters of interest that were submitted by the deadline of 20 September.
While unions are advocating for the company to be sold as a whole, a plan of action involving a split of the business and the sale of its individual assets presents a feasible alternative, Kallanish notes.
According to sources close to the dossier, Vulcan Green Steel, based in Oman, along with Canada’s Stelco and Baku Steel Company, have submitted a letter of interest for the acquisition of all assets belonging to ADI.
In the meantime, several firms are evaluating the possibility of acquiring specific assets from the former Ilva in the north of Italy. Marcegaglia has expressed interest in acquiring the tube mills and the Novi Ligure facility, a re-rolling plant situated between Genoa and Alessandria. Other interested parties include Italian service centres such as Eusider, Sideralba as well as Amenduni Steel, Carbones, Jiangsu Steamship, Profilmec and others.
Metinvest conducted a visit to Taranto during the summer months, and steelmakers Arvedi and Nippon Steel have been considering investing. However, it remains uncertain if these companies have formally expressed their interest through a letter.
MIMT and ADI’s special commissioners invited expressions of interest in July for the acquisition of the struggling steelmaker’s assets. The aim of the sale is to swiftly and effectively reduce CO2 emissions and enhance steel production in Italy, by bringing about a change in management. The commissioners have asked potential buyers to preserve employment.
At this stage, ADI’s suitors have not been asked to quote a potential price in their offers, Kallanish understands. The special commissioners intend to pursue the sale “preferably” by transferring the assets as a whole.
Natalia Capra France
