Brazil steelmaker CSN drafting bid for miner Samarco, source says

Companhia Siderurgica Nacional SA

20/06/2022 16:30

SAO PAULO, June 20 (Reuters) - Brazilian steelmaker
Companhia Siderurgica Nacional  CSNA3.SA  (CSN) is drafting an
offer to acquire miner Samarco Mineracao SA, which will be
presented to the bankruptcy court judge overseeing its debt
restructuring, a person with knowledge of the matter said.
    CSN hired restructuring firm RK Partners to draft a proposal
to buy control of Samarco, the source said, requesting anonymity
to disclose private discussions. Brazilian newspaper O Globo
reported on Sunday CSN's interest in Samarco.
    RK Partners is reaching out to Samarco shareholders Vale SA
 VALE3.SA  and BHP Group Ltd  BHP.AX , along with unions and
financial creditors, the source said. 
    An agreement may not be easy, according to the source, due
to Samarco's liabilities related to its 2015 disaster in the
city of Mariana. Shareholders, which have committed to pay for
damages, may resist any proposal to give up control of
operations while keeping that liability.
    Samarco and Vale did not immediately respond to requests for
comment. BHP and press representatives for the group of
financial creditors declined to comment.
    The judge overseeing Samarco's bankruptcy has scheduled a
mediation hearing for Tuesday between two groups presenting
competing restructuring proposals, one led by creditors and the
other by the unions with the support of Vale and BHP.

 (Reporting by Tatiana Bautzer
Editing by Brad Haynes and Marguerita Choy)
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