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Brazil/Asia: Steelmaker moves forward in mining joint venture

 |  December 14, 2014

Brazil’s largest diversified steelmaker, Cia Siderurgica Nacional, said Friday that it has agreed to move forward with a proposed joint venture with a group of Asian partners, a deal that would see the parties merge their mining and logistics operations.

According to reports, CSN’s board of directors cleared plans to group assets under its mining subsidiary, Congonhas Minerios. The deal, which is set to complete next year, will see CSN hold an 88.25 percent stake in the merged assets, with six Asian companies retaining the remaining 11.75 percent.

But reports say CSN shares plummeted following the announcement, likely on shareholder concern over the terms of the joint venture. Reports say the CSN merger could be part of the company’s efforts to avoid a $3.01 billion fine to partners in Asia for failing to honor an expansion plan with their other venture, Namisa.

Full content: Reuters

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