Nippon Steel to acquire a stake in Usiminas

Nippon Steel to acquire a stake in Usiminas

Japan’s Nippon Steel Corp. is rumored to be planning to buy a 1.7 percent stake in Brazil’s largest steelmaker, Usinas Siderurgicas de Minas Gerais SA.

This was reported by the Nihon Keizai Shimbun newspaper today. Nippon Steel is the world’s third largest steel company and as per the report, they are planning to purchase the stake by the end of the year.

This purchase would help the company boost its supply capacity amid a global realignment of the industry. This deal is expected to be announced sometime this week.

The newspaper also reported that Nippon Steel is also considering taking part in a blast furnace project planned by the Brazilian firm.

Nippon Steel responded in a statement: “We are considering the merits of various measures in cooperation with Usiminas. Nothing has been decided.”