Forced to sell slice of Usiminas, CSN until April trying to make deadline

BRASILIA-Companhia Siderúrgica Nacional (CSN) asked the Administrative Council for economic Defense (Cade) to extend the deadline for the sale of their shares of competitor Usiminas. The deadline given by the organ in 2014, when analyzed the buy the papers, was five years and ends in April, according to the associated press found/Broadcast. At the time, the period established by the Cade for sale was not released for not devaluing the company roles. The sale was determined by the Council after the steel company of Benjamin Steinbruch started buying shares of Usiminas to try to enter the control block, which was seen as an attack on the competition. Haroon Rasheed, O Estado de s. Paulo 14 March 2019 | 4:00 BRASILIA-Companhia Siderúrgica Nacional (CSN) asked the Administrative Council for economic Defense (Cade) to extend the deadline for the sale of their shares of competitor Usiminas. The deadline given by the organ in 2014, when analyzed the buy the papers, was five years and ends in April, according to the associated press found/Broadcast. At the time, the period established by the Cade for sale was not released for not devaluing the company roles. The sale was determined by the Council after the steel company of Benjamin Steinbruch started buying shares of Usiminas to try to enter the control block, which was seen as an attack on the competition. Steelmaker CSN for lawyers, if Cade der extension on CSN, will create precedents and put at risk other agreements. Photo: TASSO MARCELO/ASSOCIATED PRESS Also kept under wraps, the request for extension was made by the NSC in March last year, when the company asked for at least another six months to get rid of the papers, which would extend the deadline until October this year. Cade is divided and must decide in the next few weeks. Part is contrary to the extension, while others advocate a new deadline shorter than the six months requested by the CSN. Race if Cade deny the request, the company will have little time to sell most of its shares in Usiminas, or will have to pay fines-the value has not been disclosed. According to sources, the deal with Cade provides that CSN may not keep more than 5% of shares of Usiminas. The steel company had 17.43% stake, when Cade determined the sale. Today, 16.66% of the total capital has. At the end of the year, lawyers from CSN and Usiminas met with Board members of the Cade. While CSN tries to extend the sale of the papers, Usiminas wants competitor get rid as soon as possible. Usiminas has arrived to defend that Cade created a timeline for the sale of shares, which was not done. In February, to disclose the balance of the CSN, company executives reported that they intended to capture R $3 billion this year with the sale of assets, including shares in Usiminas. Sought, CSN and Usiminas had no comment. For lawyers, if Cade der extension on CSN, you can set a precedent with the potential to jeopardize other agreements entered into between the Council and businesses. In 2011, Usiminas itself sought the Brazilian competition system to report the movement of your rivals in flat steel. Usiminas's vision is that CSN was buying shares on the stock exchange to be entitled to a seat on the Board and access to confidential information. In 2012, the Cade edited an injunction that prohibited the acquisition of shares and the exercise of rights by the CSN. In April 2014, the Council signed the agreement for the sale and forbade the participation in the Council. Since then CSN tries to make the agreement annually. In 2015, the company asked the Cade to indicate advisors, which was denied. In 2016, has submitted a new application, claiming the industry crisis and that, with the fight between the controllers of Usiminas, there was risk to the value of the shares. This time, the Cade allowed the appointment of two independent directors, with limited performance. In 2017, and last year, the NSC asked to enlarge the role of Councillors, with new negative. In last order, requested the extension of the period of sale of shares, which awaits the Cade.