CSN-Ternium Faceoff: Verdict Looms

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Synopsis:

The STJ, Brazil's top court, is on the brink of settling the long-standing dispute between steel giants CSN and Ternium. Originating from Ternium's 2011 acquisition of a significant stake in Usiminas, the debate centers on whether a change in control occurred. CSN, claiming a $1.0 billion entitlement, contends Ternium altered control, a stance rejected in lower courts. The STJ's imminent decision, expected next week, will determine the resolution of this high-stakes clash.

Article:

In a legal showdown set to reach its climax, the Brazilian upper court of justice, STJ, is poised to bring closure to a protracted dispute involving major steel producers CSN and Ternium. The bone of contention dates back to Ternium's acquisition of a substantial 27.7 percent stake in Usiminas, a move that has triggered a legal wrangle with CSN over control dynamics.

The backdrop of the conflict is rooted in Brazilian law, which mandates that if an acquisition results in a change of control, the new controller is obligated to extend a purchase offer to minority shareholders at the same price per share. Ternium, however, refutes any alteration in Usiminas' control, setting the stage for a legal faceoff with CSN.

Central to the debate is Ternium's 2011 purchase of the Usiminas capital from shareholders Votorantim and Camargo Correa. CSN, an existing shareholder of Usiminas at the time, contends that the change in control triggered its entitlement to a $1.0 billion sum from Ternium. This claim faced rejection in lower courts, leading to the escalation of the dispute to the STJ.

As the STJ process unfolds, two ministers have already cast votes favoring CSN, while two others align with Ternium. The decisive fifth minister's impending vote, scheduled for the coming week, holds the key to settling this high-stakes legal battle and determining whether CSN or Ternium emerges victorious.

Conclusion:

The high-stakes legal clash between steel titans CSN and Ternium over Usiminas' control dynamics inches closer to resolution as the STJ prepares to unveil its final verdict. Stemming from Ternium's 2011 acquisition, the dispute centers on whether a change in control triggered CSN's entitlement to a $1.0 billion sum. As the legal drama unfolds, the STJ's imminent decision will shape the outcome of this long-standing conflict, providing clarity on the disputed financial claim and concluding a chapter in the complex history between the two steel giants.

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