Brazil Cade Suspends CSN Rights At Usiminas Pending Antitrust Ruling
April 11 2012 - 6:22PM
Dow Jones News
Brazil's antitrust agency Cade, part of the country's justice
ministry, suspended steelmaker Companhia Siderurgica Nacional SA's
(CSNA3.BR, SID) shareholder rights at rival Usinas Siderurgicas de
Minas Gerais SA (USIM3.BR, USIM5.BR, USNZY), known as Usiminas,
following CSN's recent purchases of Usiminas stock.
The suspension, part of a caution issued to CSN on Wednesday by
the antitrust agency, will last until Cade judges whether CSN's
recent purchases of Usiminas shares infringe free-competition
rights in the market, a Cade spokeswoman said. CSN has also been
barred from further purchases of Usiminas shares as part of the
cautionary measure, she said.
CSN has in recent months made successive purchases of shares in
Usiminas, which is its principal rival in the Brazilian flat steel
products market. CSN currently holds around 16% of Usiminas's
overall capital but doesn't form part of the company's controlling
shareholders' agreement.
According to analysts, CSN has invested in Usiminas because its
relatively low share price made it a good investment.
No date has yet been set for Cade's judgment on the case, the
spokeswoman said.
-By Diana Kinch, Dow Jones Newswires, Tel: 55 21 2586 6086,
diana.kinch@dowjones.com
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