Sumitomo Corp Takes Up MUSA’ New Share in Brazil

Sumitomo Corporation announced on Tuesday the firm agreed with Usiminas, Brazilian steel maker, in subscription for preferential allotment by Minera Son Usiminas (MUSA), an iron ore mining subsidiary of Usiminas. Sumitomo Corp will acquire 30% of MUSA’s shares at maximum US$ 1.929 billion. Sumitomo Corp participates in Usiminas’ iron ore expanding plan as a strategic partner. MUSA’s operation will be raised to 30 million tonnes per year in 2015 from current 7 million tonnes.

Usiminas will transfer assets and equities of an iron ore mine and ore shipping facilities to MUSA; those which are a mine located in Serra Azul of Minas Gerais Province, MRS Rogistica, a railway company of Brazilian private sector, as well as a ground for ore exporting port project in Rio de Janeiro, and an ore loading station in Serra Azul.

Sumitomo Corp subscribes for MUSA’s preferential allotment through SEM, a subsidiary of Sumitomo Corp in Brazil, to acquire MUSA’s 30% shares. Sumitomo Corp will pay US$ 1.35 billion after approval of Brazilian and concerned countries’ fair trade commissions and additional US$ 579 million after confirmation of Usiminas’ asset value and mine expansion plan.

Sumitomo Corp raises capital fund of SEM to US$ 1.255 billion from present R$ 290,000 within October.