Thyssenkrupp says it is now the sole owner of Brazilian steel mill, Thyssenkrupp CSA.
All conditions precedent have been satisfied and approvals obtained for the completion of the transaction, including from Conselho Administrativo de Defesa Econômica (CADE).
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The 26.87% interest held by Vale was acquired for a symbolic purchase price in combination with an earn-out for the event of a sale of CSA.
The transaction did not result in any financing requirements for Thyssenkrupp.
In the agreement, the minority and other participating rights of Vale and existing shareholder agreements and other operating contracts between Vale and CSA will be terminated, except for the existing iron ore contract between both parties.
“By streamlining the ownership structure, Thyssenkrupp is reducing complexity and risks and increasing its room for manoeuvre for the further development of CSA,” noted a Thyssenkrupp statement.
Thyssenkrupp posted a EUR9m (US$10.1bn) net loss for the first half of this year, citing a “sharp downturn” in the environment for materials businesses.
The overall performance of the Group continues to be “overshadowed” by the extremely difficult conditions in the materials markets,” said Thyssenkrupp.
