Brazilian steelmakers Compañía Siderúrgica Nacional (CSN) has requested a Brazilian court to order their competitor, Usinas Siderúrgicas Minas Gerais SA (USIMINAS) to use the budget in one of its business units to review the terms of a recently proposed capital plan. CSN hopes to stem its losses due to their partial ownership of USIMINAS, once the largest flat steel producer in the country.
The suit would aim to annul the terms in USIMINAS’ capital plan, which CSN maintains will dilute the stock value and harm minority stakeholders. Under the existing agreement, USIMINAS could raise up to $279 million dollars for its voting shares.
Brazilian competition authority CADE ruled almost one year ago that CSN was not allowed to directly intervene in USIMINAS’ board of directors, and the companies have said that no merger or tie-in has been considered. The suit represents the latest attempt by CSN to increase their influence over USIMINAS, of which CSN owns 14.1% of voting shares and 20.7% of simple shares, placing it among its four largest proprietors.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI