Ternium, one of the major shareholders at Brazilian flats steelmaker Usiminas, is said to be in talks with Nippon Steel to end a two-year-long legal dispute.
According to Brazilian newspaper Estadao, Ternium’s global CEO, Daniel Novegil, is negotiating with Nippon Steel an “exit clause” to allow any of the two major shareholders to leave Usiminas and sell its stake to the remaining party.
The relationship between the two shareholders has followed several legal disputes and setbacks. Recently, Ternium asked Brazil’s securities exchange commission, CVM, to recognize the flats steelmaker’s decision in May to elect Sergio Leite as the CEO of Usiminas.
After a court decision, Leite had to leave the office, but remained as a commercial vice-president. Despite the ongoing disputes, Novegil said a split at Usiminas is unlikely.