Mexican integrated steelmaker Altos Hornos de Mexico, AHMSA, and Grupo Villacero have extended the deadline to decide on a non-binding merger or acquisition agreement for a further 90-day period, AHMSA said this week.
As previously reported by SteelOrbis, both companies have been in talks over what AHMSA has labeled as “an association.” Neither company explained the nature of the transaction, whether it would be an acquisition by Grupo Villacero or a merger of both companies.
AHMSA said the extended 90-day period will allow both parties to have more time to make the needed adjustments to “complete the positive advancements both parties have had so far.”
Earlier this year, AHMSA first announced it reached a non-binding agreement with Lámina y Placa Comercial SA de CV, a subsidiary of Mexico’s Grupo Villacero, to establish a new company.
AHMSA said the new company will sum up “operating synergies” and would consolidate both companies’ steel processing and producing capacities. Mexican media suggested the agreement would result in a $300-350 million-worth merger.
AHMSA said at the time the deal would allow the indebted steelmaker to solve “liabilities” and get capital with new capital injection, so it could assure its operational continuity for the long-term.