Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is reportedly trying to revert two recent deals in the local steel industry, newspaper Valor said on Wednesday.
The local steelmaker reportedly filed requests at the country’s anti-trust authority, Cade, to annul the acquisition of slabs producer Companhia Siderurgica do Atlantico (CSA) by Ternium, as well as the merger of the long steel operations of both ArcelorMittal Brazil and Votorantim Siderurgia in Brazil.
As for the deal involving the former ThyssenKrupp slabs producer, CSA, and Ternium, CSN argued the deal would harm local competition.
Additionally, CSN said there would be a potential restriction in the access of slabs for Ternium’s competitors. CSN said the restriction to the purchase of slabs by Ternium competitors could be “drastic,” as they all depend on slabs, which is an important raw material used to produce steel.
CSN noted Vale’s co-owned slabs producer Companhia Siderurgica do Pecem (CSP) is the “only other” local slabs producer in Brazil, however, it is strongly focused on the international export market.
As for the merger between ArcelorMittal Brazil and Votorantim Siderurgia, CSN argued that, with the exception of longs producer Gerdau, the merger would eliminate the only competitor capable of equally competing with ArcelorMittal, which, in this case, would be Votorantim Siderurgia.