October 25, 2016 / 4:11 PM / 2 years ago

Ternium near buying ThyssenKrupp's Brazil mill, sources say

SAO PAULO/FRANKFURT, Oct 25 (Reuters) - Ternium SA has resumed looking at ThyssenKrupp AG’s money-losing Brazilian steel mill CSA Cia Siderúrgica do Atlántico SA for a potential acquisition, months after negotiations failed to gain traction because of legal and environmental issues, three people familiar with the matter said on Tuesday.

Talks for the acquisition of CSA are in an advanced stage, according to one of the people. While no formal offer for CSA has been made yet, interest from Ternium stemmed from the possibility of using CSA to produce more slabs, whose production is insufficient in Brazil, two of the people said.

Ternium’s Brazilian unit did not have an immediate comment. In a statement, Thyssenkrupp said it sees the future of CSA “outside the company,” making it “perfectly normal that we should conduct talks with possible interested parties.”

The news was first reported by Japan’s Nikkei newspaper on Tuesday. (Reporting by Guillermo Parra-Bernal and Arno Schuetze; Additional reporting by Georgina Prodhan in Frankfurt and Tatiana Bautzer in São Paulo)

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