French industrialists interested in bankrupt steel firm Ascometal

A group of French industrialists and investors have announced plans to make an offer of at least € 40 million ($ 56 million) to bankrupt French steelmaker Ascometal to acquire its assets.

Ascometal operates six factories in France and has sales of 969 million euros. The company supplies specialized steel products for the automotive, engineering and petroleum sectors.

Asco Industrie will hire Ascometal's industrial staff and take over the entire production of its factories, planning to invest 135 million euros in the firm over the next four years. The statement said the current CEO Jacques Schaffnit will remain in office. At the same time, it is planned to cut 62 administrative jobs.

French media are reporting that several other firms, including investment funds Anchorage and Apollo Global Management (APO.N), the former owner of Ascometal, are also planning to make an offer.

Gerdau SA (GGBR4.SA), the largest producer of long steel products in Brazil, has also made a preliminary offer to take over Ascometal's operations for € 41.5 million, depending on the stock price.

The Ascometal group includes the founder and former CEO of Airbus Noel Forjard, the former CEO of Arcelor Guy Dollé, and Frank Suplyson, who was the chief of staff of the former French minister Christine Lagarde. A proposal will be made to the Commercial Court of Nanterre for the investment instruments of Asko Industrie.