This article examines the impacts of privatization on patterns of ownership structure and the role of the State in the Brazilian steel industry. Following a review of the theoretical literature our empirical analysis suggests that the results of privatization on the sector have been considerably more complex and nuanced than might have been expected. In particular we find that privatization has been associated with increasing complexity and instability in patterns of corporate ownership. At the same time, the State, far from withdrawing to the regulatory sidelines, has continued to play an active role both as a lender and as an important indirect investor.