Trading company Toyota Tsusho, a subsidiary of Japan-based conglomerate Toyota Group, has acquired a 39.9% stake in Germany-based steel recycling company Scholz.
Toyota Tsusho did not specify how much it paid for its stake but the transaction is expected to close in the second quarter after final negotiations. It managed to see off competition from an unspecified Chinese group and US-based private equity firm Kohlberg Kravis and Roberts, according to Reuters.
Scholz will use the investment to pay down its $1.5bn in debt it has accumulated after rapid expansion and internal restructuring. It has also been affected by weak metal and scrap metal markets.
Scholz’s aluminium and engineering steel businesses are also to be sold in a separate deal during this quarter, as the company looks to reduce its debt down to €700m.