Brazilian anti-trust authority Cade declared in a cautionary statement that local steel producer CSN could hold more than 5 percent of the capital of its competitor Usiminas, provided that CSN does not interfere with the administration activities of Usiminas.
The case dates to 2011, when CSN decided to buy shares of the Usiminas capital, in a questionable strategy to interfere in the administration of the company.
In 2014, the case was taken to Cade, that ordered the sale of the shares until only a 5 percent stake was achieved. At that time, CSN owned 17.43 percent of the Usiminas shares.
Since then, the sale has been postponed by CSN amid juridical disputes, while in the meantime Cade has changed its policy of a maximum 5 percent stake in similar cases.
The statement has to be evaluated by the board of Cade counselors, which is expected to meet over the next few weeks.