Brazil steelmaker Usiminas has asked the nation’s Administrative Council for Economic Defense's (CADE) detailed information about the possible acquisition of two iron ore terminals in the state of Minas Gerais by Dutch company Trafigura, according to a document filling, which indicates the deal could affect Usiminas’ transport of iron ore in the region.
In the document, Usiminas warned Trafigura could “use its condition of controller of the referred terminals to leverage its port [which is in] consolidation phase.” It also noted “it needs freight to be feasible, in spite of other port terminals or load terminals that are not destined to exportation.”
Usiminas said Trafigura could “obtain competitive advantage in the commercialization of its own iron ore,” compared to other trading from other iron ore producers in the region.
According to a Trafigura filling to Cade, it plans to purchase a 55.5 percent interest of Terminal de Cargas de Sarzedo (TCS) and Terminal de Cargas de Paraopeba (TCP).
The deal would allow Trafigura to have easier access to small miners in the Serra Azul region. The region lacks the logistics needed to connect its operations to the railway system, according to the Cade notification.
Usiminas and MMX have a combined 44.4 percent stake in both terminals, which would be retained.