SAO PAULO (Reuters) - Posco (005490.KS) is studying a possible purchase of a stake in ThyssenKrupp AG’s (TKAG.DE) CSA steel slab mill in Rio de Janeiro, the South Korean steelmaker’s Chief Executive Chung Joon-yang said on Thursday.
“We just received information on CSA, operated by Thyssen in Brazil, and we are reviewing it internally,” Chung said in Sao Paulo. “I‘m not in a position to say yes or no (about a stake acquisition) but we are definitely analyzing it at the moment.”
News reports surfaced over the past weeks that Posco and Brazilian miner Vale VALE5.SA, which holds a 27 percent stake in CSA, were considering buying out Thyssen’s stake in the mill.
Vale has said it is not interested in taking a controlling stake in steel mills but did not rule out potentially increasing its holding in CSA.
Chung said Posco has not been in talks with Vale VALE5.SA over a possible participation in CSA. He also said Posco was studying a possible stake in Thyssen’s Alabama steel plant.
Reporting by Gustavo Bonato; Writing by Reese Ewing; Editing by Gerald E. McCormick and Dale Hudson