ThyssenKrupp is planning to sell its Companhia Siderurgica do Atlantico (CSA) or TKCSA, following Vale’s exist from the joint venture, a company executive said.
ThyssenKrupp’s president in South America, Michael Hollermann, told local media that one of the goals of the transaction with Brazil’s Vale was to clean key aspects of the shareholders agreement that could then facilitate the sale of the asset.
Vale has sold its 26.87 percent stake to ThyssenKrupp for an undisclosed, “symbolic” price, as the Brazilian iron ore producer looks to focus its operations in the mining segment.
Hollermann said Thyssen’s relationship with Vale was “complex” and an additional “obstacle” for the sale of CSA two years ago, as it tried to disinvest from the asset.
Hollermann said local steelmakers, including Usiminas and CSN, could be interested in the asset, but they are highly indebted. “If there’s a buyer, he’ll be an outsider, as the devaluation of the BRL makes Brazilian assets cheap and attractive for foreign investors,” he said.
CSA has recently received a provisional environmental license to operate. CSA has been operating under a conduct adjustment commitment term (TAC), in which the steelmaker is expected to meet a series of obligations. The TAC, which works as a provisional license, expires in April 16 this year; however, a Rio de Janeiro state environmental authority extended the CSA’s TAC for 90 more days.