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ArcelorMittal: JV-level debt, equity will fund $1.56 billion buyout of ThyssenKrup Steel USA
By Lisa Kerner
Charlotte, N.C., Dec. 2 - ArcelorMittal will finance its $1.56 billion acquisition of ThyssenKrup Steel USA using a combination of joint venture-level debt and equity.
The company entered into a 50/50 joint venture partnership with Nippon Steel & Sumitomo Metal Corp. to acquire 100% of the Calvert, Ala.-based steel processing plant from ThyssenKrupp.
In addition, the transaction includes a six-year agreement to purchase 2 million tons of slab annually from TK CSA, an integrated steel mill complex located in Rio de Janeiro, Brazil, according to a company news release.
"[The transaction] ideally complements our existing operations in the United States and the Americas and will improve our ability to supply customers in the automotive and other markets in the Southern United States, where we do not have comparable facilities today," said ArcelorMittal chairman and chief executive officer Lakshmi N. Mittal of the acquisition.
ArcelorMittal is a Luxembourg-based steel and mining company.
ThyssenKrupp is an integrated materials and technology group based in Essen, Germany.
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