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CSN is among the list of the companies mulling the acquisition of Ilva, which also includes ArcelorMittal and Marcegaglia, sources told Steel First.

CSN did not respond to requests for comment at the time of publication.

Ilva's main asset is a 11.2 million tpy flat steel, plate and tube plant at Taranto in the Puglia district of southern Italy.

It has been under the control of a government-appointed special commissioner since May 2012, when the Taranto plant was seized by the local court for allegedly breaking environmental laws.

CSN’s move is in line with market analyst views that it would continue looking to purchase low-cost assets worldwide, following unsuccessful attempts to purchase Gallatin Steel, Severstal North America and ThyssenKrupp units in the USA and Brazil.