Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-largest steelmaker, agreed to buy Mineracao Ouro Negro SA for $367 million to boost iron ore reserves.
Usiminas, as the steelmaker is known, will pay for the deal partly in cash now and the remainder in 36 installments starting in January, it said today in a regulatory filing. Ouro Negro owns about 200 million tons of iron ore, Usiminas said.
The steel producer, based in Belo Horizonte, Brazil, also signed a cooperation agreement with Ferrous Resources do Brasil SA to jointly explore and develop iron-ore reserves at Ferrous’s Santanese mine in Minas Gerais state, according to the filing.
Usiminas shares rose 55 centavos, or 5.2 percent, to 11.15 reais as of 11:57 a.m. in Sao Paulo trading and have declined about 42 percent this year, compared with a 19 percent decline for Brazil’s benchmark Bovespa Index.
Separately, the Techint Group, an Italian-Argentine industrial holding company, announced yesterday the acquisition of a 27.7 percent stake in Usiminas for 5.03 billion reais ($2.7 billion.)