Mexico’s AHMSA revokes sale agreement with Villacero

Friday, 27 August 2021 19:48:57 (GMT+3)   |   Sao Paulo
       

Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said this week it revoked a sale agreement it had with a group of investors led by Villacero Group.

As previously reported by SteelOrbis, Alianza Minerometalúrgica Internacional, a group of investors led by Villacero, would buy a 55 percent stake at Grupo Acerero del Norte (GAN), the holding company that controls Mexican steelmaker Altos Hornos de Mexico.

AHMSA said this week it revoked the deal due to Alianza’s incompliance of contract clauses, adding that the majority shareholders at GAN, which owns AHMSA, notified Alianza of the company’s decision on August 17.

“In a notice signed by Alonso Ancira Elizondo, as the representative of (GAN’s) controlling shareholders, the (contract) document had legal irregularities and lacked validity and, as such, was ineffective.”

Despite AHMSA’s decision to dismiss a deal that was made public in H1 2020, the company said it remains willing to continue conversations with Alianza as well as “other groups” to explore a “new agreement with AHMSA,” given the now favorable global scenario for the steel market.

AHMSA had been posting consecutive net losses, but managed to swing back to a profit in Q2 this year.


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