Brazilian steelmakers to battle for CSA?

It’s been two months since German steel giant ThyssenKrupp announced it was putting up for sale its share at Companhia Siderúrgica do Atlântico (CSA), a Brazilian steel mill where it teams up with Vale. Investment banks Goldman Sachs and Morgan Stanley were hired to help finding a buyer, and a new owner for the unit may be found in the own Brazilian steelmaking sector: newspaper “Valor Econômico” reported on Thursday that a number of local steel mills is considering to buy CSA.

Volta Redonda-based Companhia Siderúrgica Nacional (CSN) appears as one of the possible interested parties, and so does fellow rival Gerdau. But “Valor” reports that a consortium formed by Argentina’s Ternium, Japan’s Nippon Steel and Brazil’s Usiminas could enter the battle for CSA. It would be easier to them to make a major revamp of CSA’s strategy, including a new line of products at the plant, which would be required to make it profitable.

A deal involving ThyssenKrupp’s stake at the steel mill could be worth US$ 3.4 billion, according to market analysts.