Co-Steel shareholders approve Gerdau merger

Co-Steel shareholders approve Gerdau merger

Brazilian Porto Alegre-based steelmaker Gerdau announced in August that its North American operations were merging with Canadian Co-Steel. The shares of the new entity, to be renamed as Gerdau AmeriSteel Corporation to be held 74% by Gerdau and 26% by Co-Steel shareholders. The proposed merger has been approved by the shareholders of Co-Steel during the recent meeting held on September 23, 2002. A voting for changing the company's name into Gerdau AmeriSteel Corporation has also been effected and trade of common shares will start subject to approval of Toronto Stock Exchange. Jorge Gerdau Johannpeter, chairman of Gerdau S.A. expressed his appreciation of Co-Steel shareholders vote of confidence and added “This transaction will create a new world class steel enterprise with the financial resources, the operational critical mass and the professional talent pool needed to assume a leadership position in the consolidation and revitalization of the North American steel industry. The unification of the two quality organizations with comparable traditions and corporate images is an exciting event and a positive step towards a brighter future.” The transaction is scheduled to close on October 1, 2002 following receipt of Canadian regulatory approvals.