JSW Steel defers Italian steel co acquisition

JSW had said earlier it offered less than $100 mn for three mills of Lucchini SpV and was likely to win bid

JSW Steel Ltd, the third largest Indian steel maker, today said it has deferred the proposed acquisition of Italy's Lucchini SpV.

"For the time being, plans for India is much stronger and larger. We want to focus in India.... We have deferred our decision to invest in the Italian project," JSW Steel chairman and managing director Sajjan Jindal said.

He was speaking on the sidelines of inauguration of Ispat Pragati Bhawan, the new office of Institute of Steel Development & Growth (Insdag) in the city.

In September, Jindal had told reporters that JSW has offered less than $100 million for three mills of the insolvent Lucchini and it was in a position to win it.

The company recently also gave a clarification in the bourses saying, "In line with our long-term strategy to acquire finishing mills near to the market, we have submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. We are yet to get the response on this bid."

Lucchini, with a steel capacity of about 2.5 mt, was owned by Russia's Severstal but had to be declared insolvent in 2012 following which the government placed it under special administration and started the process to find buyers.

JSW currently has a total installed steel making capacity of 14.3 million tonnes in India.