JSW Steel has priced its bid below $100 million (about Rs 600 crore) to acquire the troubled steel company Lucchini SpA in Italy. 

The heavily-indebted Lucchini went bust in 2012 as steel prices fell sharply amid economic recession. The company was declared insolvent in 2012 and placed under special administration in 2008.

“We have placed our binding bid to acquire Lucchini to the Italian government. The cost of acquisition would be below $100 million. If successful, we hope to restart by this year end,” said Sajjan Jindal, Chairman, JSW Steel. 

Confident of winning the biding process, he said JSW would takeover only the asset. Speaking on the sideline of the M Visvesvaraya Lecture Series on Monday he said the deal, if won, would involve any fund raising.

Lucchini, which is Italy’s second largest steel company by capacity, was engaged in producing speciality long products for European railways, bars for specialised auto industry and wire rod mills. JSW plans to produce steel through more environment friendly technology.

“We are conducting due diligence to acquire Ilva. It needs huge investment as it has lot of liabilities,” said Jindal.

Forecasting a consolidation in the power sector, he said there would be a big change in the way power plants operate as Supreme Court is examining ways to set right the system in coal mining sector.

“The Supreme Court decision is expected by this month end. The government is also going to come out with a policy post-Supreme Court verdict. We cannot afford to lose over Rs 3,000 crore investments made in power sector,” he said.

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