Brazil’s largest steelmaker Gerdau is looking to sell non-core assets in order to diminish a BRL 23.7 billion gross debt, as of March, so it can focus on its best-performing assets, a media report said.
Gerdau is said to be “selectively” looking at its portfolio and should disinvest from assets it has in India, Central America and parts of
South America to focus its activities at its home country
Brazil as well as in the US market.
According to a media report, the Indian, the Central American and some South American assets have been giving Gerdau a weak return.
Credit rating agency Fitch said recently exports at
Brazil’s Gerdau should account for 40 percent of the company’s total operations by 2016 and 2017, an increase from historical levels closer to 20 percent.
Gerdau has also concluded the sale of a Spanish mill to Clerbil for EUR 155 million. Additionally, Gerdau could also receive another EUR 45 million within a five-year timeframe “depending on the future performance of the [sold] business.”