Germany's largest steelmaker ThyssenKrupp AG has trimmed the number of bidders for its United States and Brazil located assets. According to sources familiar with the ongoing transaction, the sale may reach the US$3 billion range.
One of the bidders is Cia Siderurgica Nactional SA of Brazil. Its plan is to place a binding offer for assets located in Alabama and Rio de Janeiro. The bid is without the direct support of the Brazilian development bank or BNDES and is said to be worth around US$3 billion.
Another bidder is Ternium SA and it is also interested in the Rio de Janeiro plant. Others gunning for the US site are ArcelorMittal in partnership with Nippon Steel and Sumitomo Metal Corp as well as US Steel Corp. The US site is said to be worth between US$1.5 and US$2 billion.
The decision to sell off the Steel Americas plants was reached by the company due to declining demand from auto and construction markets compounded by the competition from China and its lower prices.
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