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Brazil: CADE knocks steel stocks with latest ruling

By  |  April 10, 2014

Brazil’s antitrust regulator CADE dealt a blow to steel stocks after ordering steel giant CSN to reduce its stake in competitor Usiminas, according to reports.

Shares slumped both for second-place Usiminas and third-place CSN, but CADE ruled Thursday that the divestiture is necessary to preserve competition in the industry.

CSN is Usiminas’s largest shareholder, aside from the company’s own controlling stock, with a 17.4 percent ownership in the company. In a statement, CADE said “it is fundamental” that the ownership be reduced. The companies control the “extremely concentrated” industry of slat steel, the authority noted.

Regulators did not confirm a deadline for when CSN would be required to divest shares.

Full Content: Bloomberg

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