India’s JSW Steel has finalised a deal with Algeria’s Cevital to buy troubled Italian steelmaker, the former Aferpi in Piombino. The agreement between the companies was signed late on Friday 23 February, Kallanish understands from trade union sources, and this has been confirmed by the Italian Minister of Economy, Carlo Calenda.

The sale includes the purchase by JSW of the entire company and its assets, the unions confirm. Due diligence will start with the signing of the agreement and the closing is set for 31 March. The deal will then await approval by the authorities before JSW can proceed to implement its industrial plan and begin its investment at the Piombino site.

The Italian steelmaker was acquired by the Algerian group Cevital in 2014 in a bidding race that included JSW, among others. Since then, Cevital has failed to maintain stable production at its Italian sites. The current owner's promise to restart crude steel production through a series of planned investments also remains unfulfilled.

The Italian government had set a two-week deadline for Cevital to sell the company on 6 February. It had threatened to take back control of the steelmaker from the Algerian company if this was not met.