ArcelorMittal and Nippon to buy ThyssenKrupp steel mill in USA
1 Dec 2013 11:28 PM GMT
ArcelorMittal, the world’s largest steel maker, and Japan’s Nippon Steel & Sumitomo Metal Corporation will jointly acquire ThyssenKrupp AG’s US steel mill for $1.55 billion. The acquirers have formed a JV and will finance the deal through equity and debt. The plant at Calvert, Alabama, has a capacity of 5.3 million tonnes per annum (mtpa).
‘This is an important strategic acquisition for us. The Calvert plant is the most modern finishing facility in the world. It ideally complements our existing operations in the US and the Americas,’ ArcelorMittal Chairman & CEO Lakshmi N Mittal said. The transaction is expected to deliver $60 million of annual synergies and includes a six-year agreement to purchase 2 million tonnes of slab annually from ThyssenKrupp’s Brazilian unit, using a market-based price formula.
ArcelorMittal will be responsible for marketing products on behalf of the JV. ‘This acquisition will strengthen ArcelorMittal’s position in supplying the North American Free Trade Agreement energy industry, which is expected to demonstrate growing demand for energy pipe and tube products due to increases in oil and natural gas exploration and production,’ the company said.
‘This is an important strategic acquisition for us. The Calvert plant is the most modern finishing facility in the world. It ideally complements our existing operations in the US and the Americas,’ ArcelorMittal Chairman & CEO Lakshmi N Mittal said. The transaction is expected to deliver $60 million of annual synergies and includes a six-year agreement to purchase 2 million tonnes of slab annually from ThyssenKrupp’s Brazilian unit, using a market-based price formula.
ArcelorMittal will be responsible for marketing products on behalf of the JV. ‘This acquisition will strengthen ArcelorMittal’s position in supplying the North American Free Trade Agreement energy industry, which is expected to demonstrate growing demand for energy pipe and tube products due to increases in oil and natural gas exploration and production,’ the company said.
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