Japanese shareholders of CST in talks to sell stakes
According to reports from the industry together with JFE Steel, Mitsui & Co and Mitsubishi Corp are currently in negotiations to sell their stakes in
Brazil's fourth largest company Companhia Siderúrgica de Tubarao (CST) to world's largest steel producer Arcelor and Brazilian
iron ore producer Companhia
Vale do Rio Doce SA (CVRD). It is reported that stakes are going to be sold for a total of Yen 10-20 billion ($83.5-167.1 million).
JFE Steel, a unit of JFE Holdings Inc. established by the merger of NKK Corp and Kawasaki Steel, is intending to sell its 10.37% stake in CST which is believed to be due to the reorganization of all subsidiaries and affiliates by the JFE Group in compliance with the merger process. Japanese
trading houses Mitsui & Co and Mitsubishi Corp hold a combined 10.1% stake in CST, whereas Arcelor and CVRD both hold 28% share of the company after their joint purchase effected back in March.