CSN wants to buy Vale's mining company, Samarco, which is undergoing judicial recovery after the dam collapse in Mariana
CSN (CSNA3) hired an advisor to assist in the preparation of a plan with the objective of acquiring mining company Samarco, joint venture, which belongs to Vale (VALE3) and BHP. According to sources close to the matter, the mining company Samarco is undergoing judicial recovery.
The strategy being studied by RK Partnes for CSN would be the so-called “stalking-horse” offer, a component so that other interested buyers do not offer values below those stipulated by Samarco. The expectation of CSN's advisory is that, through the strategy stipulated by it, the disputes between the holders of debt securities and shareholders of Samarco will cease.
Through an email message, BHP and Vale declared that “Samarco is not for sale” and also highlighted their support for the restructuring plan registered by Samarco's employee unions on May 18.
The mining company Samarco was unable to pay its debts after the 2015 waste dam collapse, which fatally affected 19 people and almost ruined two villages in Mariana, in the state of Minas Gerais. Since then, the company has stopped its production and remained so until December 2020, before being able to partially restart its operations. As a result, the mining company listed around BRL 50 billion in defaulted debts in its April 2021 bankruptcy filing.
After years of unsuccessful negotiations, Samarco showed debt restructuring plans that were spurned by bondholders. On Friday the 17th, Samarco filed a petition judging the debt restructuring proposal, presented in May.
CSN and several mining and steel companies have their shares declined after the decline in iron ore
The shares of mining and steel companies are taking the place of the biggest losses on the stock exchange due to the fall of commodities, that is, due to the fall in the valuation of ores.
Around 11:25 am, this Wednesday, the 22nd, the shares of CSN (CSNA3) and its mining company CSN Mineração (CMIN3), fell 6,63% and 1,86%, respectively, quoted at R$ 15,63 and BRL 4,22. Gerdau (GGBR4) fell 5,7%, trading at R$22,50, while Usiminas (USIM5) lost more than 4%. Vale recorded a devaluation of almost 2%, at R$ 74,52.
Iron ore prices fall exponentially in 16 weeks
According to the magazine Examination, iron ore valuation plummeted to the lowest level in 16 weeks, this Wednesday, 22. The most targeted iron ore contract on the Dalian Stock Exchange, for September, ended 6% of 709,50 yuan (US$ 105,57 ) per ton, representing the ninth consecutive falling session.
The contract dropped to 698,50 yuan, the lowest level since March 1, for example on the Singapore Exchange, the July contract for the commodity dropped 5,6%, at US$ 108,45 a tonne.
As a result, traders are increasingly exasperated by the oversupply of steel in China. Still, the Asian country is trying to repress the outbreaks of Covid-19. The imposition of the “Covid Zero” policy has placed several districts under lockdown, raising uncertainties about the normalization of Chinese activity in the near future.
Os lockdowns call into question the growth expectations of the world's second largest economic power. Restrictions in China's main cities have affected several chains in the country, especially the industry, which is not running at full capacity.
