Diaco rejects purchase offer of Sidor
Colombian iron and steel producer Diaco has reportedly rejected the purchase offer submitted by Venezuelan steel producer Siderurgica del Orinoco (Sidor) following objections by the company's stockholders. According to certain analysts, Diaco's rejection is based on Sidor's purchase offer of $125 million which is reported to have been found too low. Diaco announced in June that it was open to form alliances with other steel producers. Analysts claim that the acquisition of Diaco by Sidor would be advantageous both for the Colombian and Venezuelan steel industries as Colombia would obtain raw material supplies from Venezuela at reasonable prices and Venezuela would make sales to the Andean market, which holds great significance for the future of Venezuelan steel industry.