Sajjan Jindal-owned JSW Steel is leading the race for acquiring Italian steelmaker Lucchini as his brother Naveen's Jindal Steel and Power has quit a few months ago, sources said.
"Naveen Jindal quit the race for acquiring Lucchini at least 3-4 months back. So, when Italian Prime Minister Matteo Renzi's has said that Jindal should finalise the deal, it is clear that JSW Steel is the one which is going to get it," an industry source said.
Renzi yesterday had reportedly said that Jindal family was close to acquiring Lucchini and it was a matter of days, although he did not specifically identify which Jindal it would be.
Initially, the two brothers whose firms have over 21 million tonnes of steel-making capacity between them, had evinced interests to buy Lucchini which has annual capacity of 2 mtpa - mainly long products used in construction sector.
However, Naveen quit pursuing the company, which was in 2005 bought by Russian steel maker Severstal, after he found that Sajjan was keen on buying the company, said another source. Lucchini was declared insolvent in 2012.
JSPL did not offer any comments on the issue.
JSW Steel in a BSE filing today said: "We do not offer any comments on market rumours and speculation.
"However, as a long-term strategy, we would like to expand both organically by means of brownfield and greenfield expansions and inorganically by acquiring some existing assets. In that perspective, we keep scanning suitable opportunities, which have a strategic fit."
Lucchini's current production includes hot rails, wire rod and bars.
