Court Orders Cade to Calculate Fine for CSN Over Delay in Usiminas Stake Sale

Federal court mandates Cade to determine penalty for CSN’s delay in divesting its Usiminas (USIM3) stake, after a judicial decision.

Oct 10, 2025 4:29 PM

By Brazil Stock Guide – Brazil’s antitrust regulator, Cade, has been ordered by a federal court to calculate a fine for Companhia Siderúrgica Nacional (CSN) for failing to meet the deadline to divest its stake in Usiminas (USIM3). The ruling by the Federal Regional Court of the 6th Region (TRF-6) comes after a prolonged legal battle between the two companies regarding the sale of shares.

In its latest ruling, the court required the case to be added to Cade’s agenda for an upcoming session on October 22, where the fine for CSN (CSNA3) will be discussed. This ruling follows a series of previous decisions in which CSN had been ordered to reduce its stake in Usiminas (USIM3), a move aimed at mitigating competition concerns linked to its acquisition of shares outside the controlling block of the company.

CSN argued that it had complied with the divestment order, stating that its stake in Usiminas had been reduced as required. However, the Federal Prosecutor’s Office and the Federal Public Ministry (MPF) recommended that a fine be imposed due to delays in the process, despite the eventual sale. The decision also follows a ruling in August by the Cade Tribunal, which set a final deadline for CSN to submit a divestment plan by September 1, 2025.

In her ruling, Federal Judge Mônica Sifuentes emphasized that the issue at hand is not whether Cade is required to act, but how and when the agency will implement the necessary measures. The court also warned that failure to comply could result in the case being referred to the Federal Public Prosecutor’s Office for potential criminal and administrative charges.

The dispute between CSN and Usiminas (USIM3) is just one element of a broader legal conflict, which includes an ongoing case in the Superior Court of Justice (STJ) concerning CSN’s demand for compensation following Ternium’s 2011 acquisition of Usiminas shares. CSN has claimed that the acquisition was illegal and is seeking a substantial indemnity.

In response to the ruling, Cade acknowledged the decision but confirmed that it would appeal, arguing that it contradicts its technical findings and infringes on the legal powers of its own Tribunal.