CSN Scraps Spanish Agreement

Companhia Siderurgica Nacional (CSN) has backed off its May stock purchase agreement with Grupo Alfonso Gallardo to acquire two steelmakers and a cement company from Spain’s Grupo Alfonso Gallardo for EUR946m (S1.34bn). The deal, which included Cementos Balboa, and steelmakers Corrugados Azpeitia and Corrugados Lasao, was terminated “due to contractual breaches by Grupo Gallardo,” CSN says. The move frees up some funds at a time when CSN’s domestic ambitions have been in the headlines. Last week CSN denied rumors that it was making offers for a 26% stake in Brazilian peer Usiminas, of which it holds 15.15% of the preferred shares and 11.29% of its ordinary shares.