By Brazil Stock Guide – Brazil’s Federal Attorney General’s Office filed a motion with the Superior Court of Justice on Aug. 7 to withdraw Cade’s appeal in a case involving CSN’s purchase of a stake in Usiminas. The move leaves CSN liable for a R$39 million ($7.2 million) fine imposed after it missed a court-ordered deadline to sell the shares.
The withdrawal ends the regulatory phase of the dispute and preserves a ruling that CSN could not hold more than 5% of Usiminas for over a decade. The position was only unwound following judicial intervention.
Deadline Extended Indefinitely
CSN agreed in 2014 to reduce its interest in Usiminas to below 5% within five years under a performance commitment signed with Cade, Brazil’s antitrust regulator. The company failed to meet that deadline.
In September 2022, Cade amended the agreement by replacing the original deadline with an indefinite period. The change passed by a four-to-three vote, with then-President Alexandre Cordeiro casting the deciding ballot on a proposal he had introduced.
Brazil’s Sixth Regional Federal Court later overturned the amendment, finding that it distorted the original agreement and conflicted with competition law. The court set July 2024 as the final deadline for CSN to dispose of the excess shares.
Sale Came 391 Days Late
CSN completed the sale only in August 2025, 391 days after the court-imposed deadline.
The delay triggered a daily penalty of R$100,000. In a ruling signed by Federal Appellate Judge Mônica Sifuentes on May 19, the court’s fourth panel set the total fine at R$39 million.
CSN is now being ordered to deposit the amount with the court. No payment had been made by the time Cade withdrew its appeal.
The outcome confirms that CSN’s ownership above the 5% threshold was unlawful and that the position was dismantled only after the courts intervened.
Debt Drives Asset Sales
The ruling comes as CSN seeks to reduce pressure from R$40.5 billion in net debt. The company is trying to raise as much as R$18 billion through infrastructure asset sales.
The assets include Tecar, a terminal at the Port of Itaguaí. Brazil’s Federal Audit Court found that CSN had completed only 9% of the investments required under its contract with the federal government.
The company has also faced scrutiny over the Transnordestina railway. After 17 years of delays, the audit court approved a renegotiation that reduced the project’s original R$3.07 billion in obligations by 43%.
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