Thyssenkrupp Considers Total Takeover of Brazil Plant
April 04 2016 - 3:00PM
Dow Jones News
FRANKFURT—Thyssenkrupp AG is considering a complete takeover of
its beleaguered Brazilian steel plant, according to a person
familiar with the matter.
The German industrial conglomerate could soon acquire Brazilian
mining company Vale SA's 27% stake in the plant, known as CSA, for
a symbolic price, the person said.
Reuters late last week reported that negotiations between the
two companies were in their final stages, citing a person familiar
with the matter.
Thyssenkrupp had previously indicated it would like to sell the
Brazilian plant in which it currently has a stake of around
73%.
Thyssenkrupp inaugurated the plant in 2010 but its efforts to
grow its steel business in the Americas have since proved a costly
drain on the company. The company had to write down a large part of
the roughly €12 billion ($13.7 billion) it had invested in Brazil
and in another plant in Alabama. It sold the U.S.-based plant in
2014.
Most recently, the company has been hit by increasing price
pressure in Brazil. In the first quarter of fiscal year 2016, the
Brazilian plant posted an operating loss of €74 million.
Write to Jenny Busche at jenny.busche@wsj.com
(END) Dow Jones Newswires
April 04, 2016 14:45 ET (18:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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