The Brazilian federal court, TRF-6, has mandated the competition authority CADE to enforce the sale of shares in the local steel producer Usiminas owned by Companhia Siderúrgica Nacional (CSN). These shares were acquired over twenty years ago.
According to Brazilian law, CSN is permitted to hold up to 5 percent of Usiminas shares. However, CSN currently holds 12.9 percent of Usiminas' capital, having previously peaked at more than 16 percent. In 2014, CADE instructed CSN to divest itself of the excess shares to comply with the legal limit, setting a deadline for completion in 2019. Despite this order, CSN has continually delayed the sale, actions that TRF-6 now characterizes as "unjustified inertia of CADE" regarding CSN’s compliance.
In 2022, CADE reaffirmed the requirement for CSN to reduce its shareholding, but did not specify a new deadline. The TRF-6 directive requires CADE to explain by June 25th why the initial order for the sale has not been implemented by CSN after twelve years.
Local media reports suggest that CSN currently owes approximately USD 180 million in fines due to non-compliance with the Usiminas share sale mandate.