Vale, Posco interested in ThyssenKrupp's Brazilian, US assets: report
04 June 2012
Brazilian mining giant Vale S A and South Korean steelmaker Posco are interested in buying German steelmaker ThyssenKrupp's steel plants in Brazil and the US, German weekly WirtschaftsWoche over the weekend reported, citing company sources.
Apart from saying that Vale S A and South Korean steelmaker Posco are interested in buying ThyssenKrupp's assets in the US and Brazil, the report contained no other details.
Vale, which already owns 26.9-per cent in ThyssenKrupp's CSA steel-slabs plant in Rio Janeiro, is not interested in taking a controlling stake but does not rule out hiking its stake, Reuters reported, citing a spokesperson for Rio de Janeiro-based Vale.
Vale, the world's second largest mining company, had exited from operating steel mills 10 years ago in order to focus on its core business of mining for iron ore required to run steel mills.
It has taken minority stakes in steel mills in Brazil in order to create demand for its ore. When asked about buying CSA, Vale's chief executive had in early May told analysts that the company "does not want to become a steelmaker."
Seoul-based Posco, South Korea's largest steelmaker is interested in buying ThyssenKrupp's steel operations in Alabama.