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31. July 2012

Everybody analyzing ThyssenKrupp Brazil and US plant sale

Mr LN Mittal CEO of ArcelorMittal said that all steelmakers are reviewing ThyssenKrupp AG's proposed sale of two steel plants in the Americas. He added that "Everyone is looking at it, analyzing it, trying to figure out where the synergies are and what we should do. Whether it is ArcelorMittal or any other steelmaker. I can tell you that everyone is doing the analysis."

Mr Mittal said that ArcelorMittal has already held talks at its office regarding Thyssen's proposed sale of its steel plant in Mobile, Ala., and its steel plant in the state of Rio de Janeiro, Brazil. He didn't say whether there was an interest in purchasing either of the steel plants.

In mid May 2012, Germany's ThyssenKrupp said it was considering selling the mills or bringing in partners to sustainably improve performance.

At the time, ThyssenKrupp CEO Mr Heinrich Hiesinger declined to provide a timeframe for a solution, citing the complexity of such transactions. But he said ThyssenKrupp had to act after the operations accumulated losses of around EUR 500 million in the first six months of the company's business year. In fiscal 2011, the losses had amounted to around EUR 1 billion.

ThyssenKrupp has given the sale mandate to Goldman Sachs Group Inc and Morgan Stanley.



Source - NASDAQ

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