Rio de Janeiro, Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais SA (Usiminas), announced Friday that in order to prevent a potential takeover bid by industry rival Companhia Siderurgica Nacional (CSN), its controlling shareholders, led by Nippon Steel Corp., have set up a new long-term accord "to demonstrate the stability" of the company's current shareholding structure.
CSN recently purchased stakes in Usiminas, which prompted the action. According to a statement from Usiminas, the company will be governed until 2031 by controlling shareholders, including: Nippon Steel Corp.; Nippon Usiminas Co., Ltd.; Mitsubishi Corp. do Brasil S.A.; Metal One Corp.; Votorantim Industrial S.A.; Camargo Correa S.A.; Construcoes e Comercio Camargo Correa S.A.; and Camargo Correa Investimentos em Infra-estrutura S.A. Combined, the controlling companies hold 53.7 percent of Usiminas' voting capital. After 2031, the new accord will be renewable in five-year periods. The previous accord was due to expire in 2016.
"The aim is to demonstrate to other stakeholders in the company and to the market the stability of the control group and, consequently, assure the company's continuing growth and development," said Ronald Seckelmann, Vice President of finances and investor relations for Usiminas.