Germany’s ThyssenKrupp said it was nearing a long-awaited sale of its US steel plant and had reached an agreement to settle a cartel lawsuit, clearing the way for it to raise much-needed capital.

Shares in Germany’s biggest steelmaker fell 2.1 per cent, however, as it became clear that the deal would not also include the company’s loss-making Brazilian factory.

ThyssenKrupp has been trying for more than a year and a half to find a buyer for Steel Americas – comprised of the US factory in Calvert, Alabama and steel mill CSA in Brazil – which has drained cash from the company for the past few years.

Three people familiar with the matter said ThyssenKrupp was in exclusive talks to sell Calvert to a consortium of ArcelorMittal and Nippon Steel & Sumitomo Metal. – (Reuters)