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ArcelorMittal Acquires ThyssenKrupp Steel USA with Nippon Steel & Sumitomo Metal for US$1.55B

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ArcelorMittal (NYSE: MT) today announces that it has entered into a 50/50 joint venture partnership with Nippon Steel & Sumitomo Metal Corporation (OTC: NISTF) to acquire 100% of ThyssenKrupp Steel USA ("TK Steel USA") from ThyssenKrupp (OTC: TYEKF) for an agreed price of US$1,550 million.   TK Steel USA is a steel processing plant situated in Calvert, Alabama, with a total capacity of 5.3 million tonnes including hot rolling, cold rolling, coating and finishing lines.   The transaction - which is expected to deliver US$60 million of annual synergies - will be financed through a combination of equity and debt at the joint venture level. The transaction includes a six-year agreement to purchase two million tonnes of slab annually from TK CSA, an integrated steel mill complex located in Rio de Janeiro, Brazil, using a market-based price formula. TK CSA has an option to extend the agreement for an additional three years at more favourable terms to the JV, compared with the initial time period.   The remaining slab balance will be sourced from ArcelorMittal plants in the US, Brazil and Mexico.  ArcelorMittal will be responsible for marketing the product on behalf of

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Posted-In: News Guidance Contracts Management M&A Global


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