Steelmaker Arvedi is in the process of purchasing fellow Italian stainless steel producer Acciai Speciali Terni (AST) from Thyssenkrupp, the German steelmaker said on Thursday September 16.
The sale, which is subject to approval by Thyssenkrupp's supervisory board and merger control clearance, also includes associated sales organizations in Germany, Italy and Turkey.
The sale is expected to be completed during the first half of 2022. The parties involved have not disclosed the sale price.
Thyssenkrupp said it was examining retaining a minority shareholding in AST, the details of which would be negotiated during the closing of the deal.
"This transaction has a compelling industrial rationale for [the] Arvedi Group, which becomes stronger by successfully completing its product mix," the the Italian company's founder and president Cavaliere Giovanni Arvedi said.
Arvedi's core business is primary steel production and processing and the company currently employs more than 3,500 people. AST currently has around 2,700 employees and generated sales of around ?,?1.7 billion in its 2019-2020 financial year.
AST "will profit from the new owner's willingness to invest and attractive development prospects," Thyssenkrupp said.
Thyssenkrupp, which reported a full-year loss of ?,?5.5 billion for its previous financial year, is undertaking a massive restructuring program to pay down its massive debts and fund its pension liabilities.