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JSW Steel in pact to buy Italian special steel maker for Rs 440 cr

Press Trust of India  |  New Delhi 

Domestic JSW today said it has signed an agreement with Algeria-based to acquire its Italian arm Aferpi, a specialised products maker, for about Rs 440 crore.

The acquisition of Aferpi, which owns the second largest in Italy, will help JSW expand its reach in the specialised steel market, particularly in the automobile sector, the Indian said in a statement.

The deal would also provide JSW a foothold for future opportunities in the European markets, the Sajjan Jindal-owned firm further said.

JSW Steel Srl, a subsidiary of JSW Steel, has entered into a sale and purchase agreement dated May 17, 2018, with for acquisition of 100 per cent shares of (Aferpi), and 69.27 per cent of the share capital of SpA for a cash consideration of Euro 55 million on a cash free, debt free basis, JSW Steel said.

JSW Steel had earlier tried to acquire the Italian plant in 2014, when it was known as The Algerian conglomerate Cevital, however, acquired and renamed it Acciaierie e Ferriere di Piombino (Aferpi).

The Indian said the transaction is subject to fulfilment of conditions precedents and other customary terms generally applicable to such transactions as per the SPA.

Aferpi makes a of quality and special steel for rails, wire rods and bars for railway, automotive, earthmoving vehicles, energy, fastening, springs and welding.

At present, it is working on projects that involve production of 1 million tonne (MT) of and revamping of wire rod and bar mills, installation of one electric arc furnace of 1 MT capacity with two continuous casting machines.

Besides, it is working on installation of a new rails- and beams-rolling plant and installation of the second electric arc furnace and the third continuous casting machine.

JSW Steel is planning to increase its to 40-45 million tonne by 2030 from the present 18 million tonne.

"If the country builds 300 MT capacity by 2030, we would like to plan accordingly to maintain our 15 per cent share, which will be 40-45 MT," JSW Steel had said earlier.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 21:15 IST