Am Investco, the joint venture led by ArcelorMittal with Marcegaglia and Intesa SanPaolo, is the winning bidder for Ilva, Italy’s largest steel company, sources told S&P Global Platts on Friday.
Ilva’s special commissioners — Corrado Carrubba, Piero Gnudi and Enrico Laghi — made the decision Friday morning and later informed Italian Economic Minister Carlo Calanda.
It is understood AM Investco was selected despite lingering anti-trust concerns, as ArcelorMittal is already the largest steelmaker in Europe. The special commissioners had recently asked the two JVs competing for Ilva to extend the validity of their tenders until March 31, 2018, as well as to not alter the economic terms of their offers, guaranteeing investment plans to which they’ve already committed, and to not modify their plans for the structure of the new company.
Acciai Italia, the other JV involving JSWSteel, Arvedi, Luxottica and Cassa depositi and Prestiti, did not agree to the extension, while Am Investco did. Now, the Italian government must give its official approval and the deal will need to clear anti-trust hurdles, as well.
As previously reported, Am Investco and Acciai Italia submitted binding offers to financial advisor Rothschild on March 6. Neither bidder disclosed its offer price, but according to published reports, Am Investco pledged €1.6 billion ($1.72 billion), while Acciai Italia was said to have bid €1.2 billion, along with a cap-ex commitment of €3 billion.
Annalisa Villa, PLATTS
