Steel Mills
Thyssenkrupp May Sell CSA to Ternium SA
Written by Sandy Williams
October 26, 2016
Thyssenkrupp AG is in negotiations to sell its Brazilian steel plant Companhia Siderúrgica do Atlântico (CSA) to Ternium SA.
According to the Wall Street Journal, talks are at an advanced stage but may hit a stumbling block over price for the Brazilian operations. Thyssenkrupp spent $6.8 billion to build CSA but it is currently valued at around $1.17 billion. Sources familiar with the discussions suggest it is unlikely that Ternium will be willing to pay the current book value but that a deal could be concluded by the end of this year.
It is unknown whether there are other bidders for CSA. Neither Thyssenkrupp or Ternium are commenting on the negotiations
Thyssenkrupp took full ownership of CSA from 27 percent partner Vale in 2016. CSA, part of Thyssenkrupp’s failed Steel Americas project, has struggled with soaring production costs, a Brazilian recession and global pricing pressure. Thyssenkrupp sold its Alabama plant in 2013 but was unable to negotiate a sale for CSA at that time. CSA still provides slabs for AM/NS Calvert.
Thyssenkrupp & Tata Steel
Tata Steel has been in talks with Thyssenkrupp to combine Tata’s UK operations with the German steel giant. Before a merger can be agreed upon, Tata Steel still needs to work out a deal with the UK Pension Protection Fund over UK steel worker pensions.
The potential merger was thrown awry when Tata Steel’s parent group Tata Sons Ltd, suddenly ousted its Chairman, Cyrus Mistry. Mistry is reported to be the driver of the Tata’s strategy to sell off its European assets. CLSA Asia-Pacific Markets wrote that the removal of Mistry may bring the sale strategy into question under the new chairman Ratan Tata.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.