FRANKFURT, June 5 ThyssenKrupp is
likely to sell its Brazilian steel mill to Companhia Siderurgica
Nacional (CSN), two people close to the negotiations
"But there is no decision yet," one of them told Reuters on
Wednesday, adding that a buyer could be picked in the next two
to three weeks.
ThyssenKrupp has been trying to offload its Steel Americas
business, which comprises the Brazilian mill as well as a plant
in Alabama, as it shifts investments to higher-margin products
and services such as elevators, submarines and parts for
German investor newsletter Platow Brief reported earlier,
citing no sources, that ThyssenKrupp had picked CSN as the buyer
for the mill in Brazil, CSA. The report pushed ThyssenKrupp
shares up as much as 4 percent.
Platow Brief had said ThyssenKrupp Chief Executive Heinrich
Hiesinger would hold off announcing the sale until all legal
details were agreed.
ThyssenKrupp owns about three quarters of CSA, with
Brazilian miner Vale holding the rest.
The German company declined to comment on details of the
negotiations and reiterated that it aimed to agree a deal
shortly. CSN was not immediately available for comment.
CEO Hiesinger said last month that there was a frontrunner
for Steel Americas, but declined to be more specific. Sources
had told Reuters that ThyssenKrupp was in talks with CSN, among
They had said U.S. Steel and Nucor put in bids
for the U.S. mill alone. But one of the sources told Reuters on
Wednesday that it may take longer to agree a deal for the
Alabama plant than for CSA in Brazil.
JP Morgan analysts said they still expected a sale to be
announced by the end of June. If it agrees a deal with CSN,
ThyssenKrupp is likely to retain a minority stake in CSA with a
lock-up agreement for ThyssenKrupp and a full exit in the next
two years or so, they said.
ThyssenKrupp recently wrote down the total book value of
Steel Americas to 3.4 billion euros, although analysts expect
the ultimate purchase price to be lower.