ArcelorMittal, Votorantim merger in Brazil to be 'refused or approved with restrictions' scrap group says

The acquisition of local long steel producer Votorantim Siderurgia by ArcelorMittal’s Brazilian subsidiary will not be approved by national competition regulator Cade according to domestic scrap association Inesfa.

Inesfa said the initial offtake proposal presented by the companies would mean Cade could not accept the deal as it stands.
“The worst possible scenario [of an approval without restrictions] will not happen,” Inesfa’s institutional relations director, Leonardo Palhares, said on Tuesday November 21.
“Cade is now discussing [whether] it rejects the operation or approves it with restrictions,” he added.

In early September, a technical report issued by Cade recommended the refusal of the acquisition of Votorantim Siderurgia by ArcelorMittal Brasil, and said the transaction would remove a relevant participant in a sector in which the three largest companies are responsible for more than 80% of the market supply.
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Published

Ana Paula Camargo

November 22, 2017

09:06 GMT

São Paulo