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Brazil's CVRD selling stake in Argentina's Siderar steel maker

Brazil's CVRD selling stake in Argentina's Siderar steel maker

Brazilian iron ore miner CVRD said Thursday it will sell its stake in Argentine steel maker Siderar SA to Luxembourg-based Ternium SA for US$108 million (euro82 million).
Companhia Vale do Rio Doce SA said in a statement that the deal is in line with its drive to reallocate resources to focus on overseas mining expansion, including the company's recent US$16.8 billion (euro12.75 billion) acquisition of Canadian nickel miner Inco Ltd.
Siderar is Argentina's biggest producer of flat-rolled steel, and has seven plants in Argentina employing 5,000 workers.
Ternium is controlled by the Techint Group, an Argentine conglomerate, and holds majority stakes in big steel makers in Mexico and Venezuela.
The deal was announced after markets closed Thursday. CVRD's American depository shares closed down 1.3 percent on the New York Stock Exchange, or 40 cents to US$29.84 (euro22.65).
Techint's American depository shares fell 2 percent on the NYSE, or 59 cents to US$29.41 (euro22.33).
CVRD also said Thursday that it has reached its first price agreement for 2007 with a European client, securing a 9.5 percent increase for iron ore for Italy's Ilva SpA.


Updated : 2020-12-04 13:28 GMT+08:00