Ternium $1.3 billion acquisition of CSA

Overview:

• Ternium, a Buenos Aires-based steel company, has acquired Brazilian steel-mill CSA (Companhia Siderúrgica do Atlântico) for $1.3 billion from Thyssenkrupp, a German conglomerate. 
• Thyssenkrupp acquired a 27% stake in the plant from Vale in April 2016. (The company had already owned a 73% stake in the plant.)
• According to a Thyssenkrupp statement, the company had hoped to produce slabs cheaply in Brazil and sell them in the United States and Europe, but after rising construction costs and technical problems, the company found the project no longer made economic sense.
• This transaction helps Thyssenkrupp end its steel operations in the Americas.
• Ternium will supply slabs to Thyssenkrupp’s former Calvert re-rolling facility in Alabama, in a two-million-ton per year agreement. 

Rani Mehta - Journalist