An administrative court of Brazil’s anti-trust authority, Cade, ruled unanimously that local steelmaker Companhia Siderurgica Nacional (CSN) cannot appoint representatives to the board of flats producer Usiminas. CSN is a competitor and a 17 percent shareholder at Usiminas.
A counselor at Cade said it was “strongly opposed” to the idea that a “strong” competitor like CSN could have access to the strategies of its competitor. The Cade ruling noted CSN gradually bought significant shares at Usiminas until it reached a 17 percent stake at the company, including both common and preferential shares at the flats producer.
While explaining its decision, Cade said there were “no new facts” to CSN’s request to appoint members to the board of Usiminas, and CSN did not sell any of its shares, which could result in a different scenario.
The ruling also says that CSN cannot join meetings or send representatives to Usiminas’ administration and fiscal councils. CSN is also barred from voting at the company’s upcoming general assembly on April 27, 2017.