The long-run dispute between the Brazilian steel and iron ore producer CSN, and Ternium, involving the acquisition by Ternium of a capital stake of the Brazilian steel producer Usiminas in 2011, could be settled today (June 18).
Such stake, equivalent to 27.7 percent of the Usiminas capital, was acquired by Ternium from the former Usiminas shareholders Votorantim and Camargo Correa, at a time when CSN had a capital stake of Usiminas, today reduced to 14 percent.
The acquisition was not considered as if Ternium was taking over the control of Usiminas, as the stake is lower than 50 percent, but CSN argued that Ternium and Nippon Steel, also a shareholder of Usiminas, have reached an agreement whereby they share the control of Usiminas.
Under this reasoning, CSN has asked for the “tag-along” rights of minority shareholders, under the Brazilian legislation, to sell to Ternium its Usiminas shares by the same price paid to Votorantim and Camargo Correa, meaning today an indemnification equivalent to $1.0 billion to be paid by Ternium to CSN.
CSN has lost the process next to the financial market authority CVM and in different levels of civil courts.
Today the process is in the upper civil court STJ, showing a 2X2 draw among the judges, waiting for what could be a final decision by the fifth judge.