SAO PAULO — ArcelorMittal SA has signed a binding agreement to buy Brazilian steelmaker Companhia Siderurgica do Pecem (CSP) from Vale SA and its other key stakeholders, Vale said in a securities filing Thursday.
The deal has an enterprise value of $2.2 billion, according to the filing, and would see Vale sell its 50% stake in CSP, alongside the 30% stake owned by Dongkuk Steel Mill Co Ltd and Posco Holding Inc’s 20% stake.
Founded in 2008, CSP is located in the northeastern Brazilian state of Ceara and has an annual capacity of 3 million tonnes of steel slabs.
“This transaction reinforces Vale’s strategy of portfolio simplification, focusing on its core businesses and growth opportunities,” Vale said in the filing.
The deal is subject to the usual corporate and regulatory approvals, it added. (Reporting by Gabriel Araujo, Editing by Isabel Woodford and Susan Fenton)