Japanese industrial conglomerate Sumitomo Corporation has announced that it has signed a definitive agreement with Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais SA, pursuant to which a Brazilian subsidiary of Sumitomo will subscribe for common shares in Usinas's iron ore miner subsidiary Mineracao Usiminas SA (MUSA). Sumitomo has also announced its plan to capitalize its Brazilian subsidiary to effect the investment in MUSA.
In July this year, Sumitomo agreed to acquire a 30 percent stake in Brazilian steelmaker Mineracao Usiminas for US$1.93 billion. Usiminas owns iron ore mines in the southeastern Brazilian state of Minas Gerais and the Itaguai port project in neighboring Rio de Janeiro state.
Additionally, the deal includes a 20 percent voting stake in MRS Logistics, a rail operator in Southeastern Brazil. Vale SA and CSN are also fellow stakeholders in the company.