Sept. 25 (Bloomberg) -- Cia. Siderurgica Nacional SA, Brazil’s third-largest steelmaker by output, hired Bradesco BBI to advise on an acquisition of ThyssenKrupp AG’s steel plant in Rio de Janeiro state, a person with direct knowledge of the matter said.
The person, who asked not to be identified because the matter is private, didn’t say how much the company might be worth.
CSN, as the Sao Paulo-based company is known, was waiting for ThyssenKrupp to disclose further details about the CSA steel-slabs plant before considering a bid, Chief Executive Officer Benjamin Steinbruch told reporters in Rio on June 18.
The plant “is on the table, it’s clear that we will analyze it as the rest will do,” Steinbruch said at the time. “Whenever they disclose the details, something that still hasn’t happened, we will certainly be interested in studying it.”
Officials at CSN and Bradesco declined to comment and asked not to be named, in keeping with company policies.
ThyssenKrupp, Germany’s biggest steelmaker, said May 15 that a sale of its Brazilian and U.S. plants is among “strategic options” for its unprofitable Americas unit. The company said it hired Morgan Stanley and Goldman Sachs Group Inc to examine the options. The company, which in 2010 began operating its CSA steel-slabs plant in Rio after a 5.2 billion-euro ($6.72 billion) investment, faces output costs in Brazil that are rising “disproportionately,” it said.
ThyssenKrupp built the facility, with a capacity of 5 million metric tons a year, to supply an estimated 3 million tons of steel slabs to its mills in Calvert, near Mobile, Alabama, and the rest to Germany.
Delays at the CSA plant contributed to impairment charges of 2.9 billion euros in the last fiscal year, when it reported a loss. ThyssenKrupp owns about 73 percent stake in CSA, while Vale SA owns the remaining 27 percent.
Ternium SA is also considering a bid for ThyssenKrupp’s 73.13 percent stake in the CSA slab plant.
“We are invited to participate in the process and will analyze the situation to see if there is anything that could suit the strategy and the needs of Ternium,” Chief Financial Officer Pablo Brizzio told analysts during a conference call on Aug. 1.
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