Brazil's steel manufacturer CSN said it intends to expand in North America but will not participate in the bid for U.S. Steel.
Chief Executive Officer Benjamin Steinbruch said U.S. Steel was a too big target for CSN, and it might increase its financial risk. Therefore, in order to reduce leverage, CSN expanded its U.S. business through small acquisitions.
In the second quarter, CSN's leverage, net debt/EBITDA ratio, was 2.78 times, compared to 1.31 in the same period a year ago. The company aimed to reduce leverage to between 1.75 to 1.95.