Thyssen announces capital increase as U.S. deal sealed

Germany's ThyssenKrupp (TKA.DE) announced plans to for a much-needed capital increase after striking a deal to sell its U.S. steel plant to ArcelorMittal (MT.AS) and Nippon Steel & Sumitomo Metal Corp for $1.55 billion. ThyssenKrupp has been trying for more than a year and a half to find a buyer for its Steel Americas unit - comprised of the U.S. steel finishing plant and steel slab mill CSA in Brazil - which has drained billions from the company for the past few years and been an obstacle to raising fresh funds. While the deal to sell the U.S. plant in Calvert, Alabama leaves ThyssenKrupp with its 73 percent stake in Brazil's CSA, it removes at least one millstone from the company's neck. ArcelorMittal said it would source the remaining slab for the Calvert plant from its own facilities in the United States, Brazil and Mexico.

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