Brazilian miner and iron ore producer Vale confirmed it plans to divest from local slab producer Companhia Siderurgica do Pecem (CSP), which it co-owns with POSCO and Dongkuk Steel, however, it is yet to reach a deal.
Vale’s comment came days after a media report by O Povo said four companies showed interest in CSP. The media report said Vale commenced conversations with the interested parties “three months ago.” Vale said CSP is subject to a potential disinvestment, as the miner seeks to sell non-core assets. However, it said it didn’t reach a decision so far.
The media report said interested buyers include Brazilian steelmakers Gerdau and Companhia Siderurgica Nacional (CSN), ArcelorMittal Brazil, as well as Russia-based NLMK. A source told O Povo NLMK was the only company which surpassed Vale’s expectations about a deal.
The media report said Vale could sell its stake at CSP for as much as $3 billion, which is equivalent to the company’s current debt.