Batista Brothers Expand Steel Empire with Usiminas Acquisition

Billionaire Batista brothers, Wesley and Joesley, have expanded into Brazil's steel industry with a 5% stake in Usinas Siderurgicas de Minas Gerais SA (Usiminas). The brothers, who control meatpacking giant JBS, diversified into various sectors such as power generation, banking, and oil. They acquired the shares from Cia. Siderurgica Nacional SA, which was told by Brazil's antitrust regulator to reduce its interest in the company. The Batistas have no intention of further expanding their shareholding in Usiminas.

The billionaire Batista brothers, Wesley and Joesley, have diversified their business portfolio by acquiring a 5% stake in Usinas Siderurgicas de Minas Gerais SA (Usiminas). The brothers, who control meatpacking giant JBS NV, have previously expanded into sectors such as power generation, banking, and oil. Their latest move into the steel industry follows a trend of strategic diversification to bolster their business empire.

The investment was facilitated by Globe Investimentos SA, an investment firm controlled by the Batistas. Globe acquired the shares from Cia. Siderurgica Nacional SA, which had been directed by Brazil's antitrust regulator to reduce its interest in Usiminas. The brothers have no intention of increasing their shareholding in Usiminas, according to a person with direct knowledge of the matter [1].

Usiminas, founded in 1956, is a major player in the Brazilian steel industry, processing and manufacturing flat steel products for both domestic and international markets. The company operates in two segments: Mining and Logistics, and Steelmaking. Its revenue for the last reported period was R$26.8 billion, with a gross profit of R$2.2 billion [2].

Analysts have varying opinions on Usiminas' prospects. Some analysts believe that investments in specialty steels, digitalization, and vertical integration position Usiminas for robust growth and premium pricing [3]. Others suggest that efficiency and modernization investments, along with favorable trade policies, should boost profit margins and long-term earnings growth [4]. However, there are concerns about the impact of subsidized steel imports and global overcapacity on pricing power and margins [5].

The Batista brothers' expansion into the steel industry is a strategic move that aligns with their history of diversification and growth. Their investment in Usiminas reflects a broader trend of strategic diversification in the Brazilian business landscape, driven by a desire to capture new markets and mitigate risks.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-01/jbs-s-batista-brothers-expand-into-steel-with-usiminas-deal
[2] https://simplywall.st/stock/bovespa/usim5
[3] https://simplywall.st/stock/bovespa/usim5
[4] https://simplywall.st/stock/bovespa/usim5
[5] https://simplywall.st/stock/bovespa/usim5