Brazilian flats producer Usiminas said late on Thursday it has signed a memorandum of understanding (MoU) with Companhia Siderurgica do Atlantico (CSA) for the acquisition of slab to supply its Cubatao mill, located in the city of same name in the state of Sao Paulo.
According to the terms of the MoU, there is no exclusivity in the supply of slab by CSA to Usiminas. The deal is valid for 60 months, effective on June 30, 2017.
CSA was recently acquired by Ternium, which is also a shareholder at Usiminas, but the deal is yet subject to the approval of the Brazilian anti-trust authority, Cade.
According to Usiminas, once Cade approves the acquisition of CSA by Ternium, the effects of the MoU will be suspended, since the slab deal would be considered an intra-company agreement.