ArcelorMittal mulls bid for Italian steelmaker Lucchini - Union

venerdì 4 luglio 2014 16:17

* Does due diligence of Lucchini's Piombino assets

* Considers bid for all assets or just for blast furnace

* Conducts due diligence on Italy's Ilva in parallel

By Maytaal Angel and Silvia Antonioli

LONDON, July 4 (Reuters) - ArcelorMittal, the world's biggest steelmaker, is considering making an offer later this month for Italy's second largest steel producer Lucchini, according to Italian union CGIL FIOM.

Lucchini, formerly owned by Russia's Severstal, was declared insolvent in 2012 and later placed under "special administration" - a procedure designed to save large companies and avoid heavy job losses. It fell victim to the 2008 recession that has cut Europe's steel demand by about a quarter.

"There hasn't been a formal expression of interest yet but in the last few days ArcelorMittal has been carrying out a sort of due diligence of the Piombino," said Gianni Venturi, national co-ordinator for Italian union FIOM CGIL.

Both ArcelorMittal and Lucchini declined to comment when contacted by Reuters.

Also in the running for Lucchini are India's Jindal Steel and Power and JSW Steel, though they are not interested in the company's blast furnace in Piombino, which employs around 4,000 people directly and indirectly.   Continua...