Acciaierie d’Italia (ADI) is advancing its sales process, as the special administration has commenced the review of letters of interest submitted by the deadline of 20 September. Adolfo Urso, Italy’s Minister of Enterprises and Made in Italy (MIMT), indicated to the local press last week there is significant interest from numerous international and national companies.
During the summer months, representatives from Steel Mont, Metinvest, Oman-based Vulcan Green Steel (VGS), and Canada’s Stelco engaged in discussions regarding the potential acquisition of ADI’s mills located in Genova, Novi Ligure, and Taranto, Kallanish notes.
Marcegaglia has recently expressed interest in joining the race. An informed source indicates the re-roller’s interest may be limited to specific segments of ADI’s assets, particularly the tube mills and the Novi Ligure facility, which is one of the re-rolling plants located in northern Italy.
Various companies are considering potential acquisitions of certain assets from the former Ilva, particularly in northern Italy, including the Italian service centres Eusider and Sideralba. According to people with knowledge of the dossier, Arvedi is also considering this, and Nippon Steel is reportedly also mulling joining the race.
Dividing the business and selling its various assets is a viable alternative. Two knowledgeable sources do not think there is a genuine desire to purchase the entire company and believe Metinvest is more likely to move forward with its plan to construct a flat steel mill in Piombino. Taranto is an outdated facility that requires significant capital investment and has an inflated workforce.
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.
ADI’s suitors have now 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, the say. Alternatively, if the commissioners do not deem the offers concerning the business as a whole to be adequate, the transfer will be achieved through separate sale transactions of specific business units belonging to ADI (see Kallanish 2 August).
Natalia Capra France
