Gerdau and Diaco ink strategic alliance
According to recent news in the market, Brazilian longs producer Grupo Gerdau and Colombian iron and steel group Diaco have signed a strategic alliance for technical assistance in administrative and logistics for a six-month period. Diaco currently sells 50% of steel consumed in Colombia with a production of 500'000 tons. The companies also negotiated on the sale of shares controlled by Fondo Latinoamericano de Inversiones (FLI), a Peruvian company that holds 44% stake in Colombian Mayagüez, which controls Diaco. Potential buyers of the shares are Sidor, Belgo-Mineria, Gerdau and Marubeni, which is a representative for Japanese steel producer Nippon Steel Corp (NSC). It is reported that Diaco has already rejected the offer of Sidor, which was $125 million.