CSN, Usminas To Spin Off Mining Units
Brazilian steelmakers could sell off their iron ore mining units following the success of Vale SA’s recent 90+% price rise for its iron ore products.
In a report on Monday, Brazil’s Banco Bradesco SA said that Cia. Siderurgica Nacional SA and Usinas Siderurgicas de Minas Gerais SA may accelerate plans to spin off their mining units after Vale achieved a price hike of over 90% in negotiations with Japanese and Korean steel mills. CSN and Usiminas have already planned initial public offerings of their iron ore divisions.
Banco Bradesco’s Raphael Biderman said that iron ore IPOs would be successful because they have established businesses that will gain from higher prices. He estimated that CSN may raise $10 billion after its shares doubled in the past year along with Usiminas.
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