Ternium S.A.’s €1.26 Billion acquisition of CSA Siderúrgica do Atlântico Ltda.


Allen & Overy, Mitrani Caballero Ojam & Ruiz Moreno, Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados, Linklaters and Lobo & de Rizzo have advised on the deal

Ternium S.A. TX, -1.95% entered today into a definitive agreement with thyssenkrupp AG (“tkAG”) to acquire a 100% ownership interest in thyssenkrupp Slab International B.V. (“tkSI”) and its wholly-owned subsidiary CSA Siderúrgica do Atlântico Ltda. (“CSA”). In addition, tkAG will assign to Ternium a 2.0 million tons per year agreement to supply slabs to thyssenkrupp’s former Calvert re-rolling facility in Alabama, U.S. (“Calvert”). The price of the transaction was set using EUR1.5 billion as enterprise value and September 30, 2016 as a locked-box date, and is subject to agreed-upon adjustments at closing. The transaction, which will require antitrust clearance in several jurisdictions, including Brazil, Germany and the U.S., and other conditions, is expected to close on or before September 30, 2017.

Based on the agreed-upon valuation and adjustments as of September 30, 2016, and considering CSA’s financial debt with BNDES of EUR0.3 billion, Ternium expects to disburse EUR1.26 billion for this transaction.

The assets to be acquired had in calendar year 2016 consolidated annual sales of EUR1.6 billion, shipments of 4.3 million tons and EBITDA of EUR256 million. CSA is a steel slab producer with a steelmaking facility located in the state of Rio de Janeiro, Brazil, and has an annual production capacity of 5 million tons of high-end steel slabs, a deep-water harbor and a 490 MW combined cycle power plant.

With annual crude steel production of 6.0 million tons and shipments of 9.8 million tons, Ternium purchased from third parties approximately 3.7 million tons of steel slabs in 2016, that were processed in its downstream facilities to obtain finished steel products to supply its customers. Ternium offers a high-value-added product range to serve the most demanding requirements of its industrial customers. After the completion of the CSA acquisition, Ternium will substantially increase its steelmaking capacity.

Allen & Overy LLP has advised Ternium with Karine Kodde (Picture), Jochem Kim, Marinus Winters, Danielle du Bois-Buné, Rozemin Wissels, Elise Troll and Max van Boxtel.

Mitrani Caballero Ojam & Ruiz Moreno has advised Ternium with Diego E. Parise, Juan I. Soma, Jorge Pico, Esteban Valansi, Guillermo Cornejo Bosch, Agustín Goncalves Borrega and Cecilia Brunelli.

Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados has advised Ternium with Eduardo Damião Gonçalves, Moacir Zilbovicius, Luiz Gustavo Escorcio Bezerra, Adriano Castello Branco, Pedro Santos Cruz, Fábio Coelho Studart Montenegro, Maria Amélia Colaço Alves Araujo, Ligia Lima Godoy, Janaína de Cássia Gomes Vargas and Akin Santos Ribeiro da Silva.

Linklaters LLP has advised thyssenkrupp AG with Ralph Wollburg, Sebastian Benz, Christoph van Lier, Tobias Bünten, Alexander Jüngst and Christoph Barth.

Lobo & de Rizzo Advogados has advised thyssenkrupp AG with Valdo Cestari de Rizzo, Regina Gasulla Bouza, Marcela Tavares and Ricardo de Melo Jacob.

Involved fees earner: Valdo Cestari de Rizzo – Lobo & de Rizzo; Regina Gasulla Bouza – Lobo & de Rizzo; Marcela Tavares de Vasconcelos – Lobo & de Rizzo; Ricardo de Melo Jacob – Lobo & de Rizzo; Diego Parise – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Juan Ignacio Soma – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Guillermo Cornejo Bosch – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Agustín Goncalves Borrega – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Cecilia Brunelli – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Jorge Pico – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Esteban Valansi – Mitrani Caballero Ojam & Ruiz Moreno Abogados; Eduardo Damião Gonçalves – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Moacir Zilbovicius – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Adriano Castello Branco – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Pedro Santos Cruz – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Fábio Coelho Studart Montenegro – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Luiz Gustavo Escorcio Bezerra – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Akin Santos Ribeiro da Silva – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Maria Amélia Colaço Alves Araujo – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Ligia Lima Godoy – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Janaína de Cássia Gomes Vargas – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Ralph Wollburg – Linklaters; Christoph van Lier – Linklaters; Tobias Bünten – Linklaters; Alexander Jüngst – Linklaters; Sebastian Benz – Linklaters; Christoph Barth – Linklaters; Karine Kodde – Allen & Overy; Danielle du Bois-Bune – Allen & Overy; Rozemin Wissels – Allen & Overy; Jochem Kin – Allen & Overy; Marinus Winters – Allen & Overy; Elise Troll – Allen & Overy;

Law Firms: Lobo & de Rizzo; Mitrani Caballero Ojam & Ruiz Moreno Abogados; Mattos Filho Veiga Filho Marrey Jr & Quiroga; Linklaters; Allen & Overy;

Clients: ThyssenKrupp; Ternium SA;

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