© ThyssenKrupp AG

German steel company ThyssenKrupp has agreed to sell its U.S. steel plant business to two competitors for $1.55 billion.

Following extended speculation over the deal, ArcelorMittal and Nippon Steel & Sumitomo metal Corp. said Friday that they will jointly acquire the ThyssenKrupp Steel USA. The processing plant is based in Calvert, Ala.

The deal adds U.S.-based finishing facilities for the two companies, which are headquartered in Luxembourg and Japan, respectively. It also is expected to benefit the buyers by expanding their energy and auto industry businesses.

ThyssenKrupp was looking for a buyer after a fall in steel prices led to losses for the company and large write-downs for the reduced value of the plant.