A Sao Paulo state court denied an appeal from local steelmaker Companhia Siderurgica Nacional (CSN), which requested a “tag-along” right over the potential sale or transfer of ownership of flats steelmaker Usiminas.
CSN is a minor shareholder at the local flats producer. Ternium and Nippon Steel are Usiminas’ major shareholders. CSN’s appeal was filed against Ternium.
“Tag-along” or co-sale rights are contractual obligations used to protect a minority shareholder in the event of a sale of transfer of ownership.
A media report from Estadao said Ternium bought a 26 percent stake at Usiminas in 2011 for $2.2 billion. At the time, CSN also wanted to be a major shareholder at the company.