ArcelorMittal, Nippon to buy ThyssenKrupp unit for USD 1.55 bn

Written by Associated Press | Updated: Nov 30 2013, 22:57pm hrs
German steel company ThyssenKrupp has agreed to sell its US steel plant business to two competitors for $1.55 billion.

Following extended speculation over the deal, ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. said Friday they will jointly acquire the ThyssenKrupp Steel USA. The steel processing plant is based in Alabama.

The deal adds US-based finishing facilities for the two companies, which are headquartered in Luxembourg and Japan, respectively. It also is expected to benefit the buyers by expanding their energy and auto industry businesses.

ThyssenKrupp was looking for a buyer after a fall in steel prices led to losses for the company and large write-downs for the reduced value of the plant.