Brazilian group to buy Columbia's Paz Del Rio

Brazilian industrial group Votorantim Participacoes SA has announced that it will purchase Columbia's second largest steelmaker, Acerias Paz del Rio, as part of its strategy to expand overseas. Last Friday, Votorantim bid for 52 percent of the semi-state-owned mill, surpassing offers from Arcelor Mittal, Gerdau SA, and Companhia Siderurgica Nacional. Votorantim will pay US$485 million for a controlling stake in Acerias Paz del Rio. The per-share price Votorantim offered is US$0.05, or 131.42 pesos, more than double the minimum US$0.02, or 52 pesos, per share price set by the company's 6,700 current and former employees, who make up its majority shareholder group. Votorantim chairman Antonio Ermirio de Moraes told the press this week, “Votorantim is attentive to opportunities that arise in both domestic and international markets to expand its businesses. This purchase was a good deal.” According to Mr. Moraes, Paz del Rio's proximity to the Caribbean will provide access to the US and European markets for its products. Paz del Rio produces 410,000 nt per year of flat rolled, machine wire, and rebar products, and also owns iron ore and coking coal mines.