Brazil-based Gerdau S.A. has announced that it plans to merge Gerdau with Brazilian steel company Acos Villares (S.A.) and Brazil-based construction company Prontofer Servicos de Construção Ltda.
Currently, Acos Villares is one of Gerdau's controlled companies, while Prontofer's share capital is jointly held by Gerdau BG Participações S.A. and Grupo Gerdau Empreendimentos Ltda.
Gerdau's interest in Acos Villares is expected to be cancelled on the date of the merger and Gerdau will instead take sole ownership of the company as an investment replacement.
Gerdau will bear all of the costs and expenses related to the merger, which approximately total R$1.7 million (US$997,067).