Steel Products

ThyssenKrupp Americas Sale Update

Written by John Packard


SMU has been asked about the status of the negotiations regarding the sale of the ThyssenKrupp Steel Americas assets. This includes ThyssenKrupp Steel USA and their sister facility in Brazil which produces slabs – CSA.

We understand the due diligence process continues and a number of mills have been through both facilities.

Based on SMU sources, there appear to be two groups vying for the portion of CSA not owned by Vale. The groups are reported to be CSN and a potential joint venture between Ternium/NSSMC (Nippon-Sumitomo). Our understanding is the relationship is stronger between Vale and Ternium than between Vale and CSN.

With ArcelorMittal able to pay down a portion of its debt, the mill becomes one of the potential leaders in the contest to acquire the TK USA assets. AM has a slab mill in Mexico and automotive expertise in North America. AM does not have a mill in the south.

Other companies actively involved are CSN (but they would need to buy CSA in order to supply slabs), US Steel (question about where the money comes from), Nucor (anti-trust an issue and do they align with another mill like AK Steel regarding automotive?), JFE, NSSMC.

A rumor is circulating that bids are due in February. What we have heard from TK conference calls is the company expects to make a decision by sometime during the second or early third quarter (calendar year) and close the sale by the end of the ThyssenKrupp fiscal year which we believe is the end of September.

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