Brazilian integrated steelmaker Gerdau said it has completed the business restructuring of its Mexican operations, as previously reported by SteelOrbis.
Gerdau’s board of directors approved the business restructuring on August 19, 2021. Gerdau said Mexican antitrust authority, COFECE, approved the business restructuring on December 1, 2021.
Gerdau owns Sidertul S.A. de C.V, Aceros Corsa S.A de C.V and Gerdau Corsa S.A.P.I, all located in Mexico. Under the terms of the new business restructuring in Mexico, Gerdau merged Sidertul, Aceros Corsa and Gerdau Corsa into a single company: Gerdau Corsa.
As a result of the business restructuring, Gerdau now owns 75 percent of Gerdau Corsa, while Grupo Cordova owns the remaining stake. The Grupo Cordova is made up of a joint venture between Corcre S.A.P.I de C.V. and investor Juan Angel Cordova Creel.
Gerdau said the company’s restructuring will simplify its corporate structure in Mexico to strengthen the financial profile of Gerdau Corsa, reduce its financial leverage and expenses, while also combining its key activities for greater efficiency and synergy.