Ternium announced that it has reached an agreement to acquire 68.7 million of ordinary shares of the Brazilian flat steel producer Usiminas. Ternium will acquire the shares belonging to Nippon Steel, Mitsubishi and Metal One, which are part of the group that controls Usiminas, paying BRL 10 ($1.94) per share.
The acquisition will be made via Ternium subsidiaries (Group T/T) Ternium Investments, Ternium Argentina and Confab, the latter a subsidiary of Tenaris, also controlled by Ternium.
After the conclusion of the operation, which is subject to the approval of the anti-trust authorities in Brazil, the Group T/T will achieve a total participation of 61.3 percent in the group that controls Usiminas, giving Ternium the total control of Usiminas, as ordinary decisions of the shareholders board depend on the approval of representatives of 55 percent of shares of the controlling group.
Ternium said in a statement that its objective is to achieve the full potential of Usiminas.