Steel Mills
AHMSA and Villacero Sign Non-Binding Purchase Agreement
Written by Sandy Williams
June 19, 2020
Mexican steelmakers Altos Hornos de México (AHMSA) and Villacero have a signed a non-binding agreement to merge assets as a new company. The agreement gives the two parties 90 days to complete regulatory documents to move forward with the reported $300 million deal.
A June 18 filing with the Mexican Stock Exchange said:
“The agreement signed by Alonso Ancira, president of AHMSA, and Julio Villarreal, president of Grupo Villacero, includes financial obligations that will allow AHMSA to settle liabilities and capitalize through the capture of fresh resources, in order to ensure its operational continuity in the long term.”
AHMSA has been in financial straits for several years and reported a steel segment operating loss of $95 million in Q4 2019. The COVID-19 pandemic added to the company’s woes as steelmaking operations were disrupted by supply chain issues and manufacturing closures. The merger is welcomed by local suppliers who say they have been owed money for over a year.
Earlier this year, South Korean steel producer POSCO and Techint, owner of Ternium and Tenaris, expressed interest in acquiring the AHMSA assets.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.
Cleveland-Cliffs CEO seeks ‘American solution’ for U.S. Steel
He said a new entity would operate under the U.S. Steel name and would retain its Pittsburgh headquarters.