ThyssenKrupp to sell its steel mills

Thu, Oct 11, 2012, 01:00

THYSSENKRUPP has closed the first round of bidding in the sale of its steel mills in Brazil and the US, with at least five parties still interested in acquiring one or both of the assets, a German newspaper reported yesterday.

Without citing sources, Die Welt reported that steelmakers Posco of Korea and Japan’s JFE Steel were among the companies that are still in the bidding process.

ArcelorMittal is also involved, although it is only looking at buying the US steel finishing plant in Alabama, according to the paper.

Iron ore miner Vale also remains a possible bidder. The company owns 26.9 per cent in ThyssenKrupp’s finishing slab mill in Brazil and has a right of first refusal.

ThyssenKrupp chief executive Heinrich Hiesinger said in August that he wanted to receive at least the €7 billion at which the two assets are valued on his company’s balance sheet.

Steel Americas, the division that includes both sites, posted an adjusted loss before interest and tax of €778 million for the first nine fiscal months through to the end of June.