Gerdau Metalurgica, the holding company that owns Brazilian steelmaker Gerdau, has announced that it has purchased a 28.88 percent stake in the Spanish-owned specialty steelmaker Acos Villares.
The value of Gerdau's stake is worth US$793 million, or 1.3 billion reais. Gerdau expects to pay for the deal by issuing debentures convertible into shares of Gerdau.
Gerdau Metalurgica said in a statement that it acquired the stake from BNDESpar, the investment branch of Brazil's state development bank.