thyssenkrupp divests AST stainless steel mill in Italy to Arvedi
German conglomerate thyssenkrupp (tk) said that it has sold the Acciai Speciali Terni (AST) stainless steel mill in Italy to Italian company Arvedi for an undisclosed price.
The deal, which includes the associated sales organization in Italy, Germany, and Turkey, is part of thyssenkrupp’s realignment.
Subject to approval by thyssenkrupp’s supervisory board and merger control clearance, the deal is likely to close in the first half of next year.
thyssenkrupp revealed that it is also assessing a potential minority shareholding in Acciai Speciali Terni, the details of which will be negotiated up to the closing.
The Acciai Speciali Terni stainless steel mill presently employs nearly 2,700 people. It had registered sales of nearly €1.7 billion in fiscal year 2019/2020.
The Italian steel mill marks the sale of a fourth portfolio company in the multi tracks segment for thyssenkrupp.
Martina Merz — CEO of thyssenkrupp said: “This fourth transaction shows once again clearly that we are working through our priorities and making decisive progress in the transformation of thyssenkrupp.
“Speed in focusing the portfolio is crucial for a successful change process. At the same time, improving performance remains our most urgent task. Here too we are well on track and will not let up.”
thyssenkrupp said that the partnership with Arvedi will create a solid European player in the steel business. The main business of Arvedi is primary steel production and processing.
Cavaliere Giovanni Arvedi — Founder and President of Arvedi said: “This transaction has a compelling industrial rationale for Arvedi Group, which becomes stronger by successfully completing its product mix. Furthermore, this transaction is strategic for the whole Italian economy and represents an initial step towards new exciting developments.
“We are very pleased that tk is considering a potential minority shareholding in AST, guaranteeing continuity and showing trust in the know-how and capabilities of our Group.”