Joint proposal by Arcelor and CVRD for Acesita of Brasil
The Luxembourg based major European steel producer Arcelor, and Brasil's largest iron ore producer Companhia Vale de Rio Doce (CVRD) have made a joint proposal for the acquisition of Brasilian flat stainless steel producer Acesita S.A.'s participation in Companhia Siderurgica de Tubaro (CST). Arcelor and CVRD both have participating interest in the CST, one of the largest slab producer in the world which also produces hot rolled coils. Arcelor and CVRD have agreed to combine, consolidate and share their respective equity interests in CST under the framework of a long term cooperation agreement for the development of the company. This partnership is a part of the long term strategy of Arcelor in Brazil, particularly in the flat carbon steel with the aim of producing high end products for automotive industry and for the general market in Brasil as well as implementing a strategy of slabs including the development of CST's export capabilities. Such agreement strengthens the already existing relationship between Arcelor and CVRD, aiming to combine the expertise and leadership of both companies in their respective areas.