Brazilian steelmaker Gerdau S.A. has announced that its Spanish subsidiary Gerdau GTL Spain, S.L. has inked a deal to acquire all capital stock of the holding company Grupo Feld, S.A. de C.V. located in Mexico.
Grupo Feld owns 100 percent of the following companies - Siderúrgica Tultitlán, S.A. de C.V.; Ferrotultitlán, S.A. de C.V.; and Arrendadora Valle de Mexico, S.A. de C.V.
Located in the metropolitan area of Mexico City, Siderúrgica Tultitlán is a mini-mill, which produces long steel products, such as rebar and profiles. The company has a current capacity of 350,000 mts of crude steel and 330,000 mts of rolled products. However, the company is planning to increase its crude steel capacity to 500,000 mts, and its rolled steel capacity to 430,000 mts.
Ferrotultitlán is a steel products retailer, while Arrendadora Valle de México is a real estate company that owns the buildings and real estate in which Siderúrgica Tultitlán is located.
The deal worth $259 million is subject to the approval of the Mexican free trade regulatory authorities.