ThyssenKrupp AG, Germany’s largest steelmaker, has yet to submit proposals for the sale of a stake in its joint venture with Vale SA to the Brazilian partner, Vale Chief Executive Officer Murilo Ferreira said.
“I haven’t received any complete proposal from any player,” Ferreira, speaking to reporters in Rio de Janeiro today, said of ThyssenKrupp’s talks to sell a stake in the CSA steel plant in the state of Rio. Vale is “not selling or buying anything” of the joint venture, he added.
Cia. Siderurgica Nacional SA, the third-largest Brazilian steelmaker, has emerged as the leading bidder for the CSA stake along with a ThyssenKrupp steel plant in Alabama, people with knowledge of the talks said last week. ThyssenKrupp, which owns 73 percent of CSA, is considering selling part of its stake and keeping a third of the plant, said the people, who asked not to be named because the talks aren’t public.
Vale is seeking to protect its contract rights with CSA, including an agreement to supply iron ore to the plant, Ferreira said.
Vale, ThyssenKrupp and CSN, as the Sao Paulo-based bidder for the stake is known, would seek to raise about $750 million to overhaul the plant, the people familiar with the talks said.
ThyssenKrupp, in an e-mailed response to questions, said it’s in “intense negotiations” for the asset sales and that “these negotiations include talks with our involved partner Vale, Brazilian development bank BNDES and Brazilian government circles.”
A CSN press relations official in Sao Paulo, who asked not to be named citing company policy, couldn’t immediately comment on the talks.