Brazil’s anti-trust authority, Cade, has approved the acquisition of local slab producer Companhia Siderurgica do Atlantico (CSA) by Ternium, according to a document filing this week.
CSA, formerly known as TKCSA, was sold by ThyssenKrupp to Ternium for EUR 1.5 billion earlier this year.
Cade approved the deal with no restrictions, despite questioning by local producer Companhia Siderurgica Nacional (CSN). CSN said in late June the deal involving CSA and Ternium would harm local competition.
CSN said at the time there would be a potential restriction in the access of slab for Ternium’s competitors. CSN said the restriction to the purchase of slab by Ternium competitors could be “drastic,” as they all depend on slab to produce finished steel products.
CSN noted Vale’s co-owned slab producer Companhia Siderurgica do Pecem (CSP) is the “only other” local slab producer in Brazil, however, it is strongly focused on the international export market.