Nippon Steel of Japan announced that it would reduce its ownership of Brazilian steelmaker Usinas Siderurgicas de Minas Gerais (Usiminas) in order to grant Ternium a larger interest in the company.
According to the statement from Nippon Steel, "both parties share a mutual perception that the new governance structure, in which Ternium, with its extensive business network in Latin America, has a more important role, would lead to the interests of all the stakeholders of Usiminas."
Following clearance of all other requirements and permission by the Brazilian competition authority, Nippon Steel would move 64.2 mln ordinary shares.
As a consequence, Ternium's voting percentage would rise by almost 10% to 49.5 percent following the transaction, and Nippon Steel would continue to hold a 22.2 percent share in Usiminas' voting capital.
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