JSW Steel Italy Acquires 31% in GSI Lucchini

The Italian subsidiary has completed the acquisition of remaining 30.73% stake for €1 million

JSW Steel has acquired the remaining 30 per cent stake in GSI Lucchini S.p.A for a cash consideration of €1 Million (about ₹9 crore).

The balance share capital of GSI is already held by JSW Steel Italy Srl, a subsidiary of JSW Steel. The manufacturing unit of GSI is located at the port city of Piombino in Tuscany region, providing easy access to export markets.

Last December, JSW Steel Italy Srl had signed an agreement with Industrial Development Corporation, South Africa for acquisition of 30.73 per cent in GSI provided that the company meets certain performance criteria.

“Pursuant to fulfilment of conditions precedent mentioned in the SPA (share purchase agreement), our subsidiary JSW Steel Italy S.r.l has on April 13 completed the acquisition of 30.73 per cent equity share capital of GSI,” said JSW Steel in a statement on April 14.

The plant allows specific advantages in terms of lead time, service level and logistics cost in its target markets.

The port-based facility also gives GSI the flexibility and access to import raw material’s bars/blooms and billets to supplement supplies as when required.

GSI is a producer of forged steel balls used in grinding mills with predominant application in mining processing. The brand is widely recognised in Europe and Africa and is among the prominent supplier in African mines.

The proposed transaction provides an opportunity for JSW to consolidate its stake in GSI.

JSW Steel acquisition spree

Early this month, JSW Steel has entered into agreement to acquire the high-grade steel plates and coil business of Welspun Group for ₹848 crore.

JSW Steel also through its wholly-owned subsidiary Piombino Steel, has paid ₹19,350 crore to acquire 2.5-mtpa (million tonnes per annum) production capacity of Bhushan Power and Steel at Jharsuguda in Odisha and downstream facilities in Kolkata and Chandigarh late March.

Besides making fresh acquisition, JSW Steel has doubled its production to 10 mtpa at its Dolvi plant in Maharashtra.

JSW has invested ₹15,000 crore in doubling the capacity along with 1.5 mtpa coke oven plant. The supporting facilities are to be commissioned progressively in the coming days.