It is learned that steelmaker Ternium, owner of Brazil’s Usiminas, quits the bidding of ThyssenKrupp’s asset Companhia Siderúrgica do Atlantico (CSA). In a conference call, the company’s CEO Daniel Novegil said the company is no longer participating in the process of selling the CSA due to the difference in the perception of value and also because of the status of the industry.
Ternium is one of the possible favorites to buy CSA due to synergy gains that could have with its subsidiary company in Brazil Usiminas. Other groups mentioned as interested in the assets of ThyssenKrupp in America include ArcelorMittal, Nippon Steel and Brazil’s CSN. CSA has production capacity of 5 million tons per year, faced a series of environmental problems in its implementation. The miner Vale is a minority shareholder of the venture, with 27% share, and also reduced the value of its investment in the company in the fourth quarter of 2012, almost US$600 million.
