Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) and Ternium Mexico are expected to form a merger before the end of Q1, a media report by Milenio said this week.
The rumor follows a confirmation by AHMSA that it was looking to “continue negotiations with companies interested in the acquisition (of AHMSA assets), a joint venture or any transaction that would improve AHMSA’s financial profile,” according to an AHMSA statement earlier this month.
Until the recent AHMSA announcement, the Mexican steelmaker had denied the rumors. The Milenio media report said conversations indicate either a merger between the two companies, in which AHMSA’s current board president Alonso Ancira, would be a shareholder, or an undisclosed asset sale.
Unnamed market analysts said the merger would help the combined AHMSA-Ternium Mexico entity to fight competitors under the new USMCA agreement rules. The merger would benefit Ternium Mexico, which would no longer import certain steel products.
The transaction value for the reportedly merger could reach between $3 billion and $4 billion.