ArcelorMittal tables $1.5-bn bid for ThyssenKrupp’s US steel plant
17 Jan 2013
ArcelorMittal, the world's largest steel maker and Brazil's Companhia Siderurgica Nacional (CSN) have emerged as leading bidders for Germany's ThyssenKrupp AG's steel operations in the US, The Wall Street Journal yesterday reported.
ArcelorMittal has tabled a $1.5-billion bid for ThyssenKrupp's plant in Alabama, while CSN submitted a $3.8-billion bid for the plant and a majority stake in a Brazilian mill, said the report.
The report added that US steelmaker Nucor Corp has also bid $1.5 billion for the Alabama facility, but its offer is unlikely to succeed because it lacks the same degree of balance-sheet flexibility and the supply of high-quality slabs.
Though the final bids are due in mid-February, by when other bidders could emerge, ThyssenKrupp will update shareholders at its annual meeting to be held tomorrow.
Other suitors include Luxembourg's Ternium SA and Japanese steel makers JFE Steel Corp and Nippon-Sumitomo Corp. These companies are not considered strong contenders because they do not have the financial clout, analysts told the paper.
In October 2012, German newspaper Die Welt had reported that ArcelorMittal was among eight bidders in the race ThyssenKrupp's unprofitable US and Brazilian plants and the Essen-based steelmaker may opt to shortlist two or three bidders in November. (See: ArcelorMittal bids for ThyssenKrupp's Americas steel business)
