The Brazilian upper court, STJ, maintained its previous decision, whereas Ternium should pay an estimated BRL 5.0 billion ($833 million) to the local steel producer, CSN.
The dispute dates from 2011, when Ternium acquired a 27.7 percent stake of the local steel producer, Usiminas, in a move seen by CSN as a disguised change of control of the company, a procedure that under the Brazilian legislation should have included tag-along rights to minority shareholders, such as CSN, representing the same price per share to be paid to all shareholders.
In its decision this week, TSJ conceded that the indemnification should be reduced, but did not discuss the new amount mentioning that legal costs should be reduced from BRL 500 million to BRL 5.0 million.
Ternium reported that it will challenge the decision, in a first stage next to the same STJ, and if necessary next to the country’s Supreme Court (STJ).
According to analysts, a final decision on the subject is expected for 2025.