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ThyssenKrupp to take back Terni, VDM from Outokumpu :paper
November 29, 2013 / 10:12 PM / 4 years ago

ThyssenKrupp to take back Terni, VDM from Outokumpu :paper

The ThyssenKrupp Steel USA factory is pictured in Calvert, Alabama November 22, 2013. REUTERS/Lyle Ratliff

FRANKFURT (Reuters) - Germany’s ThyssenKrupp (TKAG.DE) is set to take back Italian steel plant Terni and the VDM high-performance alloy unit from Finland’s Outokumpu (OUT1V.HE), a German newspaper reported late on Friday.

The move partly reverses the German steel maker’s sale of its stainless steel business Inoxum.

Die Welt cited company sources as saying ThyssenKrupp would take back the two units, which Outokumpu had been trying to sell, in exchange for a 1.25 billion euro ($1.7 billion) loan note it had granted the Finnish company when it bought Inoxum.

The newspaper said the transaction, which will result in ThyssenKrupp taking a triple-digit million euro writedown, was to be announced later on Friday.

The acquisition of Inoxum, which closed late last year, was worth 2.72 billion euros, comprising 1 billion in cash, the 1.25 billion euro loan note and shares.

ThyssenKrupp declined to comment. Outokumpu had no immediate comment.

Sources earlier also told Reuters that ThyssenKrupp would also announce on Friday a $1.5 billion deal to sell its U.S. steel plant to ArcelorMittal ISPA.AS and Nippon Steel & Sumitomo Metal (5401.T).

($1 = 0.7345 euros)

Reporting by Maria Sheahan and Tom Kaeckenhoff; Editing by Jon Boyle

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