Gold prices hover near 6-week high amid softer dollar, Fed rate cut bets
LUXEMBOURG - Ternium S.A. (NYSE:TX) announced Wednesday it will purchase the remaining stakes held by Nippon Steel Corporation and Mitsubishi Corporation in the control group of Brazilian steelmaker Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS. The steel producer has demonstrated strong financial momentum, with its stock trading near its 52-week high of $38.15 and posting a 27.5% price return over the past six months, according to InvestingPro data.
The transaction, valued at approximately $315.2 million, involves Ternium's subsidiary Ternium Investments S.à r.l. acquiring 153.1 million ordinary shares at $2.06 per share. This acquisition will increase Ternium's participation in the Usiminas control group from 51.5% to 83.1%. Ternium appears well-positioned to finance this purchase, with a healthy current ratio of 2.46 and liquid assets exceeding short-term obligations.
Upon completion, Ternium Investments and its subsidiary Ternium Argentina, together with Confab (a subsidiary of Ternium's affiliate Tenaris S.A.), will collectively hold 92.9% of Usiminas' control group. The remaining 7.1% will continue to be held by Previdência Usiminas, the company's employees' pension fund.
The deal follows the new Usiminas shareholders agreement entered into on July 3, 2023, and is subject to approval by Brazilian antitrust authorities. Ternium plans to finance the purchase with cash on hand.
The Usiminas control group holds the majority of the Brazilian steelmaker's voting rights. This acquisition represents an expansion of Ternium's presence in the Brazilian steel market.
According to the company's press release statement, Ternium aims to enhance Usiminas' competitiveness and value following the transaction.
In other recent news, Ternium S.A. reported its third-quarter 2025 earnings, revealing significant shortfalls in both earnings per share (EPS) and revenue compared to analyst forecasts. The company announced an EPS of $0.2524, which was substantially lower than the anticipated $0.7944, marking a 68.23% negative surprise. Revenue also did not meet expectations, totaling $3.96 billion, slightly below the projected $4.01 billion. These results have raised concerns among investors, as indicated by the company's reported net loss, which was influenced by non-cash charges. Despite the disappointing earnings report, there were no recent analyst upgrades or downgrades associated with Ternium. The financial results highlight challenges the company faces in meeting market expectations. These developments are crucial for investors monitoring Ternium's performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.