FRANKFURT Nov 29 ThyssenKrupp is set
to sell its U.S. steel plant for roughly $1.5 billion, but has
agreed to compensate the buyers if its performance develops
other than expected, two sources familiar with the transaction
told Reuters on Friday.
The German steelmaker is selling the plant to a consortium
of ArcelorMittal and Nippon Steel & Sumitomo Metal
and the deal will likely be announced after the close
of the U.S. stock exchange at 1800 GMT, they said.
"The purchase price is $1.5 billion, but there is a
compensation mechanism in place that could have a negative
impact for ThyssenKrupp over the next couple of years," one of
the sources said. "In the best case, ThyssenKrupp will not have
to grant any compensation."
A spokesman for ThyssenKrupp declined to comment, pointing
to the group's Nov. 19 statement that it was in exclusive
negotiations on the potential sale of the U.S. steel plant in
ArcelorMittal and Nippon Steel were not immediately
available for comment.
ThyssenKrupp has been trying for more than a year and a half
to find a buyer for its Steel Americas unit - comprised of the
U.S. steel finishing plant in Calvert and a steel slab mill CSA
in Brazil - which has drained billions from the company for the
past few years.