Brazil's Usiminas Hires Credit Suisse for Potential Unit Saleby
Usiminas hired investment bank Credit Suisse Nov. 26
Steelmaker has yet to take a final decision on potential sale
Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA hired Credit Suisse SA as a financial adviser to help explore the potential sale of all or part of its manufacturing subsidiary.
Usiminas, which hired Credit Suisse Nov. 26, has yet to make a final decision on the potential sale, the company said in a statement Monday. Its manufacturing unit is called Usiminas Mecanica.
Brazil’s steel industry is reeling as customers in the automotive and construction sectors retrench amid a domestic recession. Slowing economic growth in China, the world’s biggest metals consumer, is fueling a selloff in everything from iron ore to copper.
Concern over finances at Brazil’s three largest steelmakers, Cia. Siderurgica Nacional SA, Gerdau SA and Usiminas, has triggered a plunge in their bonds. Usiminas bonds due for repayment in 2018 were trading at 29.5 cents on the dollar on Monday.