Brazilian steelmaker CSN's (CSNA3.SA) (SID.N) plans to grow through acquisitions encountered multiple setbacks on Friday after a deal in Spain collapsed and its ambitions to purchase a stake in Brazilian archrival Usiminas faced a new hurdle. CSN called off the purchase of the cement and steel assets of Spain's Grupo Alfonso Gallardo, alleging a breach of contract. The deal, which had been announced in May, involved the purchase of three plants in Spain and one in Germany as well as the assumption of $1.31 billion of debt. CSN "rescinded the purchase based on the terms previewed in the contract" and is "taking all the measures to defend its rights," according to a regulatory filing. A spokeswoman for Gallardo, based in Jerez de los Caballeros, Spain, did not have an immediate comment on the rescission. Shares of CSN, the country's most profitable steelmaker, rose as much as 3.4 percent on Friday after the collapse of the Gallardo purchase eased concerns among investors that the company could overpay for assets to expand overseas. The stock was up 1 percent at 15.90 reais in early afternoon.
Companhia Siderurgica Nacional (CSN) is an integrated steel producer in Brazil and Latin America. Shares of SID traded higher by 0.11% or $0.01/share to $9.43. In the past year, the shares have traded as low as $8.01 and as high as $18.41. On average, 5656370 shares of SID exchange hands on a given day and today's volume is recorded at 2156539.
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