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Ternium makes its move for a $3 billion stake in Brazilian rival Usiminas (USNZY, TX, SID, NISTY)

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Latin American steelmaker Ternium ( TX , quote ) has made a 5.2-billion-real offer ($3 billion) to buy a 26% stake in Brazilian steelmaker Usinas Siderurgicas de Minas Gerais ( USNZY , quote ).

The offer was made to two Brazilian industrial groups -- Camargo Correa and Votorantim -- which own the combined 26% share.

Ternium is offering the two firms 40 reais ($22.41) per ordinary share in Usiminas. This represents a 72% premium over the recent closing price of 23.25 reais.

Local media have reported in recent months that others have been circling around Usiminas. Rival steelmaker Companhia Siderurgica Nacional ( SID , quote ) had offered a similar 5-billion-real offer for Votorantim and Camargo Correa's combined stake, but local antitrust issues were a concern.

There is great interest in Brazil's beaten-down steelmakers because of the expected boom in the building of the country's infrastructure due to its hosting two major global events in the upcoming years - the 2014 soccer World Cup and the 2016 Olympics.

Any deal for Usiminas hinges on an approval by Japan's Nippon Steel ( NISTY , quote ).

Nippon Steel is the largest shareholder with 23.7% stake in Usiminas.

Sources close to the deal say that Nippon Steel does prefer Ternium over SID.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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