Brazilian flat steel producer Usiminas asked the anti-trust authority Cade to order the sale of its shares by its competitor CSN, as determined in 2014.
As recently reported by SteelOrbis, Cade has altered its long-term jurisprudence of allowing companies a limited 5 percent stake in competitors, accepting now higher capital stakes provided that there is no interference with the administration of the company.
The change of the jurisprudence was individually ordered by the superintendent of Cade, but that still had to be evaluated by the general board of Cade. Usiminas wants to appeal the decision, and its request could be evaluated by the Cade board still this week.
According to Usiminas, while CSN remains as its shareholder, the liquidness of its shares is reduced, generating difficulties for the indication of board members by minority shareholders.
The case dates to 2011, when CSN decided to buy shares of the Usiminas capital, in a questionable strategy to interfere in the administration of the company.