Brazil’s anti-trust authority, Cade, has approved with no restrictions the sale of Vale’s 26.87 percent stake at Brazil JV Companhia Siderurgica do Atlantico (CSA) to ThyssenKrupp.
The deal has been anticipated by media and the two companies earlier this year, as Vale wants to focus its activities in the mining business.
“The transaction is in line with the ThyssenKrupp Group decision of consolidating its control over CSA and Vale’s desire to focuses its efforts in other investments in Brazil and worldwide,” the companies said in a document filing.
In June last year, a media report said Brazil steelmaker Companhia Siderurgica Nacional (CSN) was looking to acquire CSA.
ThyssenKrupp then said in April this year it was planning to sell its Companhia Siderurgica do Atlantico (CSA) or TKCSA, following Vale’s exist from the joint venture, a company executive said.
ThyssenKrupp’s president in South America, Michael Hollermann, told local media at the time that one of the goals of the transaction with Brazil’s Vale was to change key aspects of the shareholders agreement that could then facilitate the sale of the asset.
Hollermann said Thyssen’s relationship with Vale was “complex” and an additional “obstacle” for the sale of CSA two years ago, as it tried to disinvest from the asset.
Hollermann said local steelmakers, including Usiminas and CSN, could be interested in the asset, but they are highly indebted. “If there’s a buyer, he’ll be an outsider, as the devaluation of the BRL makes Brazilian assets cheap and attractive for foreign investors,” he said.