FRANKFURT, Nov 29 (Reuters) - 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 Calvert, Alabama.
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.