Chile’s National Economic Prosecutor's Office (FNE), the country’s competition regulator, has approved this week the sale of 100 percent of Gerdau’s operations in Chile to local family-owned groups Matco and Ingeniería e Inversiones.
Gerdau sold 100 percent of Aza Participações SpA, including all its local subsidiaries, Gerdau AZA SA, Aceros COX SA, Armacero – Matco SA and Salomon Sack SA, to Chilean investors, as a way to reduce debt. Chilean investors include Ingeniería e Inversiones Limitada, Inversiones Reyosan SpA, Los Andes S.A. de Inversiones and Matco Cables SpA.
Gerdau’s former Chilean assets include three long steel mills with a combined capacity of 520,000 mt/year, as well as the steelmaker’s distribution facilities. Gerdau said the deal should be closed by July 2018.
Despite selling Aza Participações SpA and its related subsidiaries, Gerdau still owns indirect subsidiary pela Gerdau Chile Inversiones Limitada. In April this year, Gerdau sold a minority stake at its subsidiary Siderperu, one of Peru’s main steelmakers, to Gerdau Chile Inversiones.
Gerdau explained at the time the transaction would not change the way the business is operated, as it does not characterize the move as a stock public offering. Gerdau Chile Inversiones bought 463 million shares for a combined $155 million. Gerdau SA, the Brazilian holding company, owns 642 million shares at Siderperu, while Gerdau Chile Inversiones Ltda owns 463 million shares.