Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said on Thursday it has 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 combine “operating synergies” and will consolidate both companies’ steel processing and producing capacities. Additionally, the deal will allow the indebted steelmaker to solve “liabilities” and get capital with new capital injection, so it can assure its operational continuity for the long-term.
The agreement sets a 90-day period for both companies to obtain regulator approvals.