Lakshmi Mittal's ArcelorMittal in $1.5bn US steel unit deal

Steel czar Lakshmi Mittal’s ArcelorMittal plans to stump up $250m (£153m) of equity in a $1.5bn deal to buy ThyssenKrup’s US steel unit.

The company has bought the American plant for $1.55bn in a joint venture with Japan’s Nippon Steel & Sumitomo Metal Corporation.

The acquisition is being financed with a $1bn debt split between Nippon and ArcelorMittal with a $258m equity portion from each party.

The deal is subject to approval of regulatory authorities and is expected to be completed by the second quarter of next year.

Speaking about the deal, Mittal said: “The ratio of debt to equity is two to one which implies $1bn of debt on the joint venture.”

City A.M.reports that the deal would not impact ArcelorMittal’s plans to reduce its net debt target from $17bn to $15bn in the longer term.

According to the Sunday Times Rich List, Mittal is the UK’s fourth-richest man with a £10bn fortune.

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