The Techint Group has entered into an agreement with Alfa SA de CV in which Techint will acquire Alfa's 42.5% shareholding in Hylsamex SA de CV.

Techint's offer depends upon shareholder acceptance of an offer that will be extended to all Hylsamex shareholders. The agreement, which followed a competitive bidding process with the participation of leading steel companies, also remains subject to the approval of the applicable Mexican authorities. Techint has engaged Citigroup to arrange and participate in the financing of the acquisition.

As part of the agreement, Techint will also acquire Alfa's indirect participation in Sidor CA, the leading Venezuelan steel producer. Techint, which also controls Sidor through Consorcio Siderurgia Amazonia Ltd., and Siderar SAIC, an Argentine flat steel producer, plans to consolidate within a single entity its direct and indirect holdings in flat and long steel producers. The resultant company is expected to be the leading regional steel producer in Latin America and a substantial exporter.

The new industrial company would have an annual steelmaking capacity of 12 million tonnes, annual revenues of approximately US$5 billion and produce a wide range of flat, long and coated steel products.

The Techint Group is an international group of companies with global operations focused principally in steel and energy. Since 1952, Techint has had a substantial presence in Mexico through Tubos de Acero de Mexico SA, the seamless pipe manufacturing company that is part of Tenaris, Techint's global steel pipe business, and Techint SA de CV, an engineering and construction company specializing in power distribution lines and energy, petrochemical and industrial plants.

Hylsamex SA de CV is a Mexican manufacturer of flat and long steel products.