Flacks Group is seeking to resume its bid for Acciaierie d’Italia

At the same time, the government is considering the idea of leasing out the company’s assets as a step towards a sale

The American investment fund Flacks Group is seeking to reignite the battle for Acciaierie d’Italia (formerly Ilva, ADI). This is according to La Repubblica.

The latest proposal, presented to ADI’s administrators, involves the creation of a company called Flacksider, whose shareholders will also include the state and two companies from the sector. The aim is not only to ensure the continuity of production by supplying semi-finished products, but also to begin work on the reclamation of the site and the construction of a new ‘green’ plant in partnership with the Danieli Group, based on DRI technology and electric furnaces.

The Flacks Group’s initiative came on the eve of a meeting of the standing working group on Acciaierie d’Italia, which is due to take place next week. Furthermore, it was put forward against a backdrop of intensified contacts between the commissioners of the former Ilva and representatives of Jindal Steel International, which is considered the favourite in this race thanks to its financial stability.

The government is currently considering the option of leasing ADI’s assets for a period of 18 months as a preparatory step towards a sale. This procedure will also be conducted via a tender, which may attract other participants in addition to the two direct bidders for the company currently in the running.

However, according to Kallanish, informed sources are sceptical about Jindal Steel International leasing Acciaierie d’Italia – the government is in talks with the Indian company on this matter. One of them describes the company as being ‘evasive’ regarding its investment plans. Insiders also claim that there is no realistic prospect of a sale in the near future.

Furthermore, a Milan court previously ordered the Taranto plant to cease operations from 24 August until environmental protection measures are put in place – a ruling on the appeal lodged by the company’s commissioners is expected to be announced shortly.

It should be recalled that in February this year, the European Commission approved a rescue loan of up to €390 million for Acciaierie d’Italia in accordance with EU state aid rules. As stated in the institution’s press release, the measure aims to ensure that Adi can cover its operating costs until the business is transferred to a new operator, to be selected through a tender process.