Jindal Steel has made a revised offer of approximately €4 billion ($4.2 billion) to acquire the troubled Italian steelmaker, Ilva, in a bid to outcompete rivals from Azerbaijan. The new proposal includes a payment of about €1 billion for the assets, as well as a commitment to invest around €3 billion to revamp the main steel plant in Taranto. This is an increase from Jindal’s previous offer of €2 billion, which included a plan to gradually shut down blast furnaces and build new facilities.
The Italian government is expected to select a winning bidder in the coming weeks, with Bedrock Industries Management and a consortium comprising Baku Steel Co. and Azerbaijan Investment Co. also in the running. The plant’s current output is around 2 million tons per year, but the government is seeking a bidder that can restore production to its peak annual capacity of 10 million tons.
Jindal’s revised plan includes a payment of around €500 million in cash and €500 million of inventories to acquire the assets. This is more than the rival offer from Baku, which was reported to be around €1 billion. The Indian steelmaker’s proposal reportedly includes a plan to build two electric arc furnaces and a direct reduced iron (DRI) plant to produce 6 million tons of steel per year.
The sale of Ilva has been marred by controversy and disputes, with the company previously being controlled by ArcelorMittal before the Italian government took it over. The government is seeking a bidder that can restore the plant’s production capacity and create jobs in the region. Representatives for Jindal and the Italian government have declined to comment on the matter.