JSW Steel sends binding offer to Italian steel maker Lucchini

Italian steelmaker Lucchini has received a binding offer from JSW Steel for its core assets in Piombino and is considering the offer.

The Piombino plant on the Tuscan coast include a blast furnace, a steel mill, a coke plant, three re-rolling mills and facilities at the port.

Lucchini, Italy's second-largest steel plant by capacity, was previously owned by Russia's Severstal and its biggest shareholder, Russian businessman Alexei Mordashov, but it was declared insolvent in 2012 and placed under special administration after falling victim to the plunge in European demand for steel since 2008.

The company declined to say whether the offer by JSW Steel, controlled by billionaire Sajjan Jindal, included all assets or just some.

Industry sources have said Jindal's plan was for Lucchini to process steel made elsewhere but the leading labour union has expressed opposition to any piecemeal sale.

JSW was left as the only bidder for Piombino when Jindal Steel and Power, controlled by Sajjan's brother Naveen, pulled out after showing initial interest.

Lucchini can produce about 2.5 million tonnes of steel a year.

JSW Steel is also in the running to buy Italy's largest steel plant, Ilva, according to sources.

Other parties to have expressed an interest in Ilva include the world's largest steelamker, ArcelorMittal and privately-owned firm Marcegaglia.

(Reuters)