Mexico's Ahmsa, Villacero enter agreement for potential merger

Mexican steelmakers Altos Hornos de Mexico (Ahmsa) and Villacero have entered into a non-binding agreement to merge their assets under a new company, Ahmsa said in a Mexican Stock Exchange filing on Thursday June 18.

A financial injection of an undisclosed magnitude into Ahmsa is part of the agreement, the company noted. This was necessary to cover part of its debt and to allow it to raise funds through new issues, according to the document.
"Through a new legal vehicle, [both companies] will unite their operational synergies and consolidate their production and processing capacities," Ahmsa said.
The agreement - which gives the companies 90 days to consider the deal - was signed with Villacero subsidiary L??mina y Placa Comercial SA.

Ahmsa had been looking for a strategic partner after accumulating...

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