SÃO PAULO Latin American steelmaker Ternium SA has ruled itself out as a possible bidder for ThyssenKrupp AGs 73.13-percent stake in the 5-million-tonne-per-year Cia. Siderúrgica do Atlântico (CSA) slab plant in Brazil.
"Ternium is no longer participating in the CSA sales process given (its) different value perception, and also because of the (steel) industry situation," chief executive officer Daniel Novegil told analysts in a conference call April 30.
The company saw falling steel prices drag down its earnings in the first quarter of 2013, with net profit falling 11.6 percent to $151.4 million year over year as net revenues fell just 2 percent to $2.13 billion in the same comparison.
Novegil gave no details about the divergence of opinion between Ternium and ThyssenKrupp when asked by analysts during the call.
Acquiring CSA would have given Ternium self-sufficiency in the supply of slab. Currently, the company buys around 3 million tonnes per year of slab from third parties to feed its flat-rolling facilities in Mexico, where it is able to produce as much as 6 million tonnes per year of flat steel products but only 2.3 million tonnes per year of slab.
In February, ThyssenKrupp chairman and chief executive officer Heinrich Hiesinger said the company was aiming to sign a sales agreement for its Steel Americas division by May.
Besides CSA, the division also includes a flat-rolled steel mill in Calvert, Ala.
Several steelmakers have confirmed interest in the assets, including ArcelorMittal SA, U.S. Steel Corp. and Nucor Corp. (amm.com, Feb. 12).
Brazils Cia. Siderúrgica Nacional SA (CSN) is also interested in the division, but it recently said that it has not made any binding bid for the assets and that it is "conservative in terms of acquisitions" (amm.com, April 2).
A version of this article was first published in AMM sister publication Steel First.