Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
German metal trader Kloeckner said on Friday that it plans to sell off parts of its European commodity distribution business to Spain’s Hierros Anon SA.
The German company said it has received an offer by the Spanish steel products maker for the acquisition of its loss-making national companies in France, the United Kingdom, the Netherlands, and Belgium.
The companies concerned employ around 1,500 people, Kloeckner said in a statement.
The German company anticipates the deal to have a positive impact on the group’s earnings before interest, taxes, depreciation and amortization (EBITDA) from 2024 onwards.
However, Kloeckner added that it expected a one-time negative hit on group equity of around 210 million euros ($231.06 million), based on the current equity of the national companies and further deconsolidation effects.
The company has not disclosed a purchase price for the transaction, which is expected to close in the first half of 2024.
($1 = 0.9088 euros)
(By Paolo Laudani; Editing by Linda Pasquini and Miranda Murray)
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