Nippon Steel Retreats On Report Of Lower Usiminas Stake

Nippon Steel Retreats On Report Of Lower Usiminas Stake.
Staff Reporters
MetalSource Steel

TOKYO (NQN)--Shares in Nippon Steel Corp. (5401) fell back for the first time in three days Friday, after The Nikkei reported before the bell that Brazilian steel giant Cia. Siderurgica Nacional SA (CSN) has proposed to buy an additional 26% stake in rival Usinas Siderurgicas de Minas Gerais SA (Usiminas).

Usiminas is a Brazilian steelmaker under Nippon Steel's umbrella. If the acquisition by CSN is completed, CSN would put itself ahead of the Japanese steelmaker as Usiminas' top shareholder.
Investors are apparently selling Nippon Steel on concerns the firm's influence on the promising Brazilian market will decrease.