Ternium CEO upbeat on appeal against competitor CSN
By Kylie Madry
MEXICO CITY, Sept 30 (Reuters) -Steelmaker Ternium expects a Brazilian court to rule in its favor in an appeal against competitor CSN regarding its 2011 purchase of a stake in local firm Usiminas, the firm's CEO said on Monday.
The dispute stems from Ternium's purchase of what was equivalent to a 27.7% stake in Usiminas shares. CSN, which held 12.9% of the company's shares at the time, filed a lawsuit claiming that Ternium should have launched a tender offer to acquire shares owned by minority shareholders, as they had tag-along rights.
In June, a top court ruled that Ternium hand over 5 billion reais ($920 million) to CSN, with Ternium saying it would appeal.
"I trust that Brazil's justice system will recognize that in this case there is jurisprudence which goes back many, many years," CEO Maximo Vedoya told Reuters on the sidelines of an event hosted by Brazilian export and investment promotion body Apex.
"I'm really hopeful that this will be resolved," Vedoya said.
The executive told Brazilian daily Valor in August that if Ternium were to lose the appeal, the company could rethink its investments in Brazil.
But he seemed more upbeat on the country on Monday, highlighting opportunities for growth with Mexico.
Ternium is "huge for trade between Mexico and Brazil," Vedoya said. "We're a vehicle for Brazil to integrate with North America."
The executive later told journalists that Mexico and Brazil could update their trade agreements to boost industry, especially as Brazil's had slipped in recent years.
Ternium, which is currently expanding its sprawling plant in northern Mexico, also sees the industry as standing to benefit with a review of the U.S.-Mexico-Canada trade agreement pending in 2026.
And with Claudia Sheinbaum set to be inaugurated as Mexico's president on Tuesday, Ternium is "really optimistic" about her plans for industrialization, Vedoya said.
($1 = 5.4497 reais)
Reporting by Kylie Madry; Editing by Leslie Adler
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