Ternium announces purchase of CSA and expects to shell out € 1.26 bi

The Ternium, one of the partners of Usiminas controllers in Brazil, just closed a deal to purchase of Companhia Siderúrgica do Atlântico (CSA), German''s Thyssenkrupp. In view of the debt the CSA with BNDES, of about € 300 million, to € 1.26 billion expected Ternium comes up with the transaction. The start of talks between the companies had been anticipated by the Broad column.
This isn''t the first time that Ternium attempted to acquire the operation, located in Rio de Janeiro. A few years ago, the German group had put up for sale the CSA along with your steel rolling mill in the United States, in Alabama, but Thyssen sold this unit separately. The Ternium has deficit of plates in your operation in Mexico.
The purchase also raises speculation about a breakup of Usiminas, Ternium and Nippon Steel, female members of Usiminas controllers, living a corporate fight for more than two years. The unit of Usiminas in Cubatão, with primary activity paralyzed for more than a year, need this third boards for laminate. Thus, the power plant and the CSA have synergies.
As statement sent by Ternium, the unit acquired in Brazil will follow with the supply agreement of 2 million tons of slabs per year for the former Thyssenkrupp cold rolling plant, Calvert, Alabama. The price of the transaction was set using 1.5 billion euros as the company''s value and 30 September 2016 as the reference date, and is subject, at the close of the operation, to settings. The transaction must be approved by competition authorities in some jurisdictions, including Brazil, Germany and the United States, in addition to other conditions and is expected to be completed by 30 September 2017.
"To complete this transaction, Ternium is incorporating more a State-of-the-art steel plant to your industrial park. This will allow to increase our differentiation. The specialization of this plant in high-tech steel plates, combined with product development, supply chain management and to our ability to produce high-end steel in Mexico and Argentina, will provide new opportunities for the manufacturing of finished sophisticated steel products for our customers. This, for your time, will strengthen our business in strategic industrial sectors in Latin America ", in a statement, the President of Ternium, Daniel Novegill.
The CSA has annual production capacity of 5 million tons of steel plates. With a crude steel production of 6 million tonnes and dispatches of 9,800,000 tonnes, Ternium bought approximately 3,700,000 tons of steel plates to third party in 2016. The Ternium reported yet that will finance the purchase with bank loans.