Posted on 02 Feb 2023
Altos Hornos de México (Ahmsa) chairman Alonso Ancira is leaving the company imminently in the next few weeks, representatives from the industry and politicians from the Coahuila de Zaragoza state told media.
The executive is pressured to negotiate the sale of his stake to large creditors to solve Ahmsa's debts with Mexico's state power company Comision Federal de Electricidad (CFE), energy company Petróleos Mexicanos (Pemex) and the finance ministry.
During a conference last week, Mexican President Andrés Manuel López Obrador announced that Ahmsa could receive the government’s support under the condition that the steelmaker’s chairman sells his participation in the company.
According to the latest information, it will be Ahmsa’s large creditors, Carghill Financial Services International and Banco Afirme, headed by businessman Julio Villareal - president of steelmaker Villacero Group, which will take the control of the steelmaker.
There is also a possibility of other new investors from the US, but this option is mostly associated with the fact that at the moment the negotiations are taking place in San Antonio, Texas.
The complex scenario was confirmed by Ahmsa's spokesman, who said on Tuesday that negotiations are still open. “Nothing has been concluded, Ahmsa has not been sold. There are ongoing negotiations with potential investors and the possibility of financing, association or the possible sale of the company are being evaluated.”
The situation resulted in the forced stop of Ahmsa’s both steel and iron ore production for more than a month, and the loss of customers, suppliers and sources of financing.
Meanwhile, analysts estimate that Ternium and ArcelorMittal México are now in a good position to meet Mexican steel demand in the absence of Ahmsa. However, the situation implies a shortage of material supply for the US market and this may lead to a supply disruption.
Source:Kallanish
