Brazilian mining giant Companhia Vale do Rio Doce (Vale) is planning to sell its stake in local Brazilian flat steel maker Usinas Siderurgicas de Minas Gerais (Usiminas), for 594 million Brazilian reais ($247.5 million).
Vale aims to sell its 5.89 percent stake in Usiminas to Nippon Steel, upon which the latter's share in Usiminas would rise to 28 percent.
Brazilian companies Grupo Votorantim and Camargo Correa SA, which together hold 23.1 percent of Usiminas' voting shares, are likely to exercise their right to buy part of the stake being sold by Vale.
Meanwhile, Usiminas will halt its No. 1 blast furnace in Cubatao, Sao Paulo for 90 days from March 9 to reduce costs.
The shutdown will cut the company's pig iron output by 270,000 mt, i.e. six percent of its annual capacity.