Brazil’s anti-trust authority, Cade, rejected this week a request by local steelmaker Companhia Siderurgica Nacional (CSN) to annul the merger of the long steel operations of ArcelorMittal and Votorantim Siderurgia in Brazil.
The deal was approved early in February, as reported by SteelOrbis, on certain conditions, including asset sales to offset potential impacts of the deal on the longs market. CSN filed a request for the case to be reviewed and annulled, however, Cade said the steelmaker’s request was a result of its dissatisfaction of the decision.
Under the terms of the approved merger agreement, the steelmakers agreed to sell certain assets to avoid a concentration in the domestic longs market. The deal only involves the longs operations of both companies in Brazil, Votorantim Siderurgia said. Votorantim’s mills in Argentina and Colombia, Acerbrag and Acerias Paz del Rio, were not included.
ArcelorMittal has agreed to sell its Cariacica long steel mill in the state of Espirito Santo, while transferring a lease contract at its Itauna plant in the state of Minas Gerais to another company. It also committed to selling two steel wire drawing facilities.
Brazil’s Cipalam said at the time of the merger it was interested in acquiring certain assets from ArcelorMittal Brazil. Cipalam is a Brazil longs steelmaker.
Under the terms of the merger, Votorantim Siderurgia will be a subsidiary of ArcelorMittal Brazil. Votorantim SA, the holding that owns Votorantim Siderurgia, will own a minority stake at ArcelorMittal Brazil.