The Marcegaglia family's dream of expanding into primary steel production has come true.
The Group has closed the transaction of 100% purchase of the division long stainless steel products of the Finnish multinational Outokumpu for 228 million euro after the arrival of the go-ahead from the competition authorities, both by the European Commission and the United States Competition Authority.
The Group thus achieves "the largest acquisition made so far in our history" they say Antonio and Emma Marcegaglia, president and vice president of the group. “It is an operation that allows us to achieve important industrial synergies and to continue along the path of developing increasingly sustainable and competitive products” and add: “We are closing a circle, crowning the dream of our father Steno who aspired to invest in the primary production of steel”. Steno Marcegaglia, who had laid the foundation stone of the group in Gazoldo degli Ippoliti, in the province of Mantua in 1959, passed away in 2013 and was succeeded by his children Emma (who was also president of Confindustria) and Antonio.
The match with Arvedi for the acquisition of the former Ilva
In this small and crucial steel sector, attention in Italy obviously goes entirely to chance ex Ilva. Breaking the deadlock is still in the making, like explained the president Franco Bernabè which, however, does not exclude that this 2023 could be the turning point for the Taranto steelworks. Marcegaglia, together with Goodbye, according to L'Espresso recently reported, is seriously evaluating the acquisition of the company. First the State will have to deal with the ArcelorMittal case: the Italian government would like to increase its shares, going from the current 32 to 60 percent of the shares. It will also be necessary to wait for the former Ilva plants to be released from seizure by the judiciary and the environmental plan can be considered completed. Unless, also to untie oneself from the French-Indians, one proceeds with a controlled failure, says the weekly. The question analysts are now asking is: does the acquisition of the Finnish company bring Marcegaglia's project on the former Ilva closer or further away? The Mantuan group had already been stopped by the institute for European competition when it came to participating in the consortium led by ArcelorMittal.
What is the Finnish operation about?
Marcegaglia's Finnish operation consists ofpurchase of 5 implants distributed between Europe and the United States which closed 2022 with a total turnover of almost 1 billion and 300 million euros and have around 650 employees. Between these an electric furnace steel mill for special steels in Sheffield in the United Kingdom, where the wire rod rolling plant and the bar production plant are located. And then the plant for the bar production in Richburg, USA and the wire rod hot rolling plant and the plant of production of drawn wires in Fagersta, Sweden.
The new geography of the Marcegaglia Group
Meanwhile, the names of the companies that become part of the have already been defined new geography of the Marcegaglia group: Marcegaglia Stainless Sheffield Limited (subsidiary of Marcegaglia Steel), Marcegaglia Stainless Richburg LLC (subsidiary of Marcegaglia USA INC) and Fagersta Stainless AB (subsidiary of Marcegaglia Specialties).
The prospects, also in the light of the very positive results of 2022, are of continuous growth and strengthening on international markets. As Antonio and Emma Marcegaglia explain “with this acquisition we further strengthen our business in the flat market and strengthen our stainless steel portfolio with long products, a market in which they had a small presence and in which instead now, in Europe, we become a significant player”.
In the transaction, the company was assisted as financial advisor by Intesa Sanpaolo, for the financial DD, fiscal DD and business advisory activities by PwC and, as legal advisor, by Studio Cappelli RCCD.
