Japanese Nippon Steel and Luxembourg-based ArcelorMittal have reached a basic accord to buy ThyssenKrupp's steel plant in the US for about $2 billion
Nippon Steel & Sumitomo Metal and ArcelorMittal, the world’s two largest steelmakers, are close to buy a plant in the US from Germany’s ThyssenKrupp in a deal worth about $2 billion.
According to a report from Nikkei, Japanese Nippon Steel and Luxembourg-based ArcelorMittal have reached a basic accord with ThyssenKrupp on the deal.
Without naming its sources, the newspaper said, the partners are making a joint bid for the plant in Alabama state, which manufactures automotive sheet steel, aiming to more than double their combined production capacity in the US.
Without identifying possible buyers, ThyssenKrupp earlier this month said it was in exclusive negotiations on selling the modern but unprofitable plant which only came online in 2010.
Nippon Steel and ArcelorMittal will split the purchase costs evenly, with specifics to be fleshed out and announced in early December, the Nikkei said.
ArcelorMittal and the Japanese giant already jointly produce steel in Indiana State in the US.
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