The Brazilian steel and iron ore producer, CSN, has closed a deal to sell up to 11 percent of the capital of its iron ore mining subsidiary, CSN Mineração (CMin), to Japan’s Itochu Corporation.
According to a statement by CSN, the board of the company has approved under non-binding terms the proposal of Itochu by an equivalent to $1.32 per share of CMin, which would point to $635 million for the total amount of the deal.
Payment conditions, readjustments, and other clauses will be negotiated by the parties.
According to CSN, the conclusion of the deal still depends on final approval by the companies and by the approval of the competition defense authority, CADE.
CSN added that the corporate governance and the control structure of CMin will not be altered.
During the second quarter of 2024, CMin produced 14.42 million mt of iron ore, the second highest in a quarter for the company.