Brazil's CSN not interested in U.S. Steel, eyes smaller targets

Companhia Siderurgica Nacional SA

23/08/2023 18:58

SAO PAULO, Aug 23 (Reuters) - Brazilian steelmaker CSN
 CSNA3.SA  will not make an offer for U.S. Steel  X.N  as it is
too big of a target, its CEO Benjamin Steinbruch said on
Wednesday, although his firm is still interested in expanding to
the North American market.
    In an event hosted by lender Santander Brasil in Sao Paulo,
Steinbruch, who is also a controlling shareholder in CSN, told
Reuters the firm is interested in expanding in the United
States, but it is focusing on smaller acquisition targets. 
    "We're not interested in bidding for U.S. Steel. It's too
big of an asset and we're committed to reducing our leverage",
the executive said, denying market rumors about joining the race
for U.S. Steel.
    In 2018, the Brazilian company sold a steel mill in the U.S.
to Steel Dynamics for $400 million and it still owns a mill in
Germany, where it produces long steel.
    CSN ended the second quarter with leverage, measured by net
debt/EBITDA ratio at 2.78 times, compared to 1.31 a year
earlier. The company has a target to reduce this leverage to
between 1.75 to 1.95.    
    

 (Reporting by Alberto Alerigi Jr.
Editing by Alistair Bell)
 ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))