Ternium, a Luxembourg-based flat steel producer with operations in Latin America, announced that its subsidiary Ternium Investments has entered into an agreement with Nippon Steel & Sumitomo Metal Corporation regarding the governance of Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas.
Through the agreement, new governance rules for Usiminas, a Brazil-based steel producer, include an alternation mechanism for the nomination of each of the CEO and the Chairman of the Board of Directors, as well as a new mechanism for the nomination of other members of Usiminas’ Executive Board.
Ternium and NSSMC will arternate with the right to nominate the CEO and the Chairman at every 4-year interval, comprising two consecutive 2-year terms. For the initial four years, Ternium will be entitled to nominate the CEO and NSSMC will be entitled to nominate the Chairman.
The Agreement includes an exit mechanism consisting of a buy-and-sell procedure, exercisable at any time during the term of the existing Usiminas shareholders' agreement after the fourth-and-a-half-year anniversary from the coming election of Usiminas’ Executive Board in May 2018.
As part of this agreement, Ternium and NSSMC will take all necessary steps to amicably terminate or resolve all pending judicial and administrative disputes involving Ternium, NSSMC, their affiliates or Usiminas.
Ternium, together with NSSMC, is committed to moving forward with the turnaround of Usiminas and the enhancement of its competitiveness and corporate value in the best interest of Usiminas and all of its stakeholders.
Copyright: North America Procurement Council Inc., PBC