The appointment of Sergio Leite as the CEO of flats steelmaker Usiminas could be reverted if there is no agreement by the company’s two major shareholders, Nippon Steel and Ternium.
Major shareholder Nippon Steel has filed a request within Brazil’s securities exchange commission, CVM, to annul the decision. Nippon has also filed a lawsuit and is demanding the annulment of the decision, according to newspaper Valor.
A judge is said to be reviewing the case and should try to conciliate the two shareholders in a meeting. If the two shareholders don’t reach an agreement regarding the CEO, a Brazilian court could then determine a name to take the CEO seat.
Leite is supported by Ternium, but rejected by Nippon Steel.
Replacing Romel Erwin de Souza, who was supported by Nippon Steel, Leite didn’t please the three representatives of Nippon at the Usiminas board.
Sources close to the situation say the appointment of another executive is absurd. However, if the two opposing sides don’t reach an agreement, the situation could get even more complicated to the struggling steelmaker.