International Steel Mills
Ternium, Tenaris Up Their Stake in Usiminas
Written by Laura Miller
July 6, 2023
Ternium and Tenaris have upped their stake in Brazilian steelmaker Usinas Siderúrgicas de Minas Gerais S.A. (Usiminas).
Ternium’s Brazilian subsidiary Confab Industrial S.A., Ternium Investments, and Ternium Argentina, collectively known as the T/T group within the controlling group of Usiminas, closed on a previously announced acquisition of 68.7 million ordinary shares of Usiminas.
The shares were purchased at a price of 10 Brazilian Reais ($2.03) per share from Japan’s Nippon Steel, Mitsubishi, and MetalOne. The total price paid for the increased shares was upwards of $139 million.
Pursuant to the transaction, Tenaris put forward approximately $23 million in cash for 11 million shares, effectively increasing its stake in Usiminas to 9.8%.
Usiminas is based in Belo Horizonte and operates iron ore mines and flat-rolled steelmaking operations throughout Brazil.
Ternium and Tenaris, both headquartered in Luxembourg, are a part of the Techint Group. Ternium is a flat-rolled steelmaker with facilities in Mexico, Brazil, Argentina, Colombia, Central America, and the US. Tenaris produces seamless and welded pipe and tube products with manufacturing facilities in 16 countries.
By Laura Miller, laura@steelmarketupdate.com
Laura Miller
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