SYDNEY, Nov 4 (Reuters) - Insolvent Australian industrial group Arrium Ltd's ARI.AX U.S. based Moly-Cop division has been sold to U.S. private equity firm American Industrial Partners for $1.23 billion, two sources close to the deal said.
"I can confirm it is American Industrial Partners," one source said.
Moly-Cop, which makes steel balls to grind ore, operates mostly in the United States and Latin America, and had been excluded until now from Arrium's restructuring of its steel and iron ore mining businesses in Australia.
A public announcement of the deal was expected to be made later on Friday, another source said.