ArcelorMittal plans to joint bid

31 January 2013

ArcelorMittal and Japanese steelmaker Nippon Steel & Sumitomo Metal Corp. are planning a joint bid to buy ThyssenKrupp AG's Steel Americas unit to ramp up automotive steel sheet production.

Earlier this month, Luxembourg-based ArcelorMittal reportedly submitted a USD 1.5 billion bid for ThyssenKrupp's carbon steel plant in Calvert, while Brazil's Companhia Siderurgica Nacional SA reportedly made a USD 3.8 billion bid for both the plant and a majority stake in ThyssenKrupp's Brazilian mill.

Nucor Corp. also is reportedly in the running for the Calvert facility, bidding USD 1.5B for it.

Germany's biggest steelmaker, ThyssenKrupp produces steel slabs in Brazil that it ships to Alabama for finishing in Calvert. The company has recorded losses of more than USD 15.7B for the plants.

Though ThyssenKrupp has invested about USD 15B in the mills, ThyssenKrupp CEO Heinrich Hiesinger said in August he wants to sell the two separately for at least the book value of about USD 9B.

Final bids are due in mid-February and ThyssenKrupp said it plans to pick a buyer this fiscal year, which ends in September.