ThyssenKrupp nears stainless steel sell off
ThyssenKrupp
ThyssenKrupp the German based steel giant is preparing the details to spin off their stainless steel division in order to cut debts. The business is expected to raise around 4 billion euros ($5.8 billion). The share offering is likely to be handled by Citigroup and Deutsche Bank.
The move follows a similar one from Arcelor Mittal who earlier this year successfully launched Aperam. Stainless steel prices have been low throughout 2010 despite rising raw material costs forcing many produces including Thyssen Krupp, Arcelor and Outokumpu to make losses.
There was some strengthening of balance sheets following the mini commodity boom at the beginning of 2011, since then much of these gains have now slipped back. With the absence of increases in stainless steel prices in the short term cost cutting is key in order to invest for the future expansion.
The next question is what will the new stainless steel business be called ?
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