Argentinian steelmaker Techint is accusing Japanese-based Nippon Steel of orchestrating a move that could completely alter the control of Brazil’s Usiminas, according to a media report.
The move began with the “unilateral removal” of executives appointed by Techint, which resulted in a breach of agreement with shareholders.
“They [the Japanese shareholders] are very frustrated with the changes we started to do in the company since 2012, aiming to make it more efficient and competitive. Actually, they want to get back to the past, by using artificial facts to change the company’s governance,” Roberto Caiuby Vidigal, the president of Techint group in Brazil and one of the counselors of Usiminas, told Brazilian media.
“The Japanese tried to change our agreement by proposing the alternation of president, which we don’t agree,” said Vidigal.
According to Vidigal, in April this year the Japanese shareholders tried to substitute Usiminas’ president, Julian Eguren, as well as vice-presidents Paolo Bassetti and Marcelo Chara.
A few weeks ago, Argentinian steelmaker Techint announced it planned to buy a 10 percent stake in Usiminas. Added to Techint’s existing stake at just over 27 percent, the deal would make the company a major stakeholder in the Brazilian steel producer, which will grant Techint the right of voting at the Usiminas administration council.
Japanese-based Nippon Steel is other major investor in Usiminas, with a 29.45 percent stake in the company.
Usiminas is Latin America’s largest finished flat steel producer.
