South Korean steelmaker Posco is reportedly interested in acquiring Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA), according to a media report by El Diario de Coahuila.
AHMSA has already confirmed it is looking to “continue negotiations with companies interested in the acquisition (of AHMSA assets), a joint venture or any transaction that would improve AHMSA’s financial profile.”
According to local media reports, other potential buyers include Villacero and Ternium. A separate media report by La Prensa de Monclova said this week Villacero’s conversations are at an advanced stage. Bidders expect a transaction close by this month, but none of the mentioned companies have confirmed official negotiations with AHMSA. Ternium said recently it should be cautious regarding acquisitions.
“As for mergers and acquisitions (M&A), we are always looking for acquisitions,” said Ternium CEO, Máximo Vedoya at a Q4 earnings call.
“If those acquisitions are in the Americas, we are going to look for them. So that could be a possibility. But we don’t have anything today that I can say we are going to do that acquisition or that other,” Vedoya said at the time.
Mexican president Andres Manual Lopes Obrador said this week the Mexican government would not provide financial aid to the struggling steelmaker.