UPDATE 2-Brazil's CSN, Namisa partners to merge units after long rift

lunes 24 de noviembre de 2014 11:29 GYT
 

(Recasts to add details, comments from analysts, sources throughout)

By Guillermo Parra-Bernal

SAO PAULO Nov 24 (Reuters) - Brazil's Cia Siderúrgica Nacional SA and its partners in the iron ore venture Namisa will merge their mining and logistics businesses to create a major ore exporter, ending a years-long rift due to a failed expansion plan.

The merger requires the approval of both the partners' boards of directors by Dec. 12, CSN, as the company is known, said in a securities filing on Monday.

The terms of the agreement were not detailed in the filing.

A source who was familiar with the deal and requested anonymity said the terms of the pact could still be revised.

Namisa is 60 percent-owned by CSN, with the rest owned by a group led by Japan's Itochu Corp, JFE Steel Corp , Nisshin Steel Co Ltd, Sumitomo Metal Industries Ltd, Kobe Steel Ltd and South Korea's Posco .

Analysts said CSN may have been motivated to combine the units to avoid paying more than $3.01 billion in penalties to the group for missing previously agreed expansion goals for Namisa. Last year, CSN warned that the partnership could be dissolved if the group's divergences couldn't be resolved.

CSN's main mining asset is the Casa de Pedra mine, which has some of Brazil's largest and best-quality ore deposits.   Continuación...