Brazil: Ternium strengthens its presence by acquiring the Companhia Siderurgica do Atlantico
The Ternium/Techint Group has acquired from the Thyssen Krupp 100% of the Companhia Siderurgica do Atlantico (CSA), headquartered in the district of Santa Cruz, in the State of Rio de Janeiro. The acquisition turns Italy into the leading steel producer in Brazil, ranking it first in another strategic sector after that of renewable energy sources. The operation, worth approximately 1.5 billion euros (calculated on the basis of the valuation of the share capital contained in the financial statement published at the end of September 2016), was finalised at the end of a long negotiation which lasted close to one year and that began after the CSA was demerged from the Brazilian giant Vale, after it sold its 27% share in the company. However, in order to complete the transaction other conditions need to be met, including the approval by the regulatory authorities for competition of Brazil, Germany and the United States.
According to the statement made by the CEO of the Company, Daniel Novegil, in a press release, with this acquisition Ternium incorporates in its industrial facilities a last-generation steel plant which is to be considered strategic to increase its capacity to produce high-quality steel, thus supplementing the production in its plants in Argentina and Mexico and further strengthening the Group’s leadership in the production of steel in Latin American.