The board of directors at Brazilian integrated steelmaker Gerdau has approved the restructuring of the company’s operations in Mexico, the company said.
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, and co-owned with Grupo Cordova. 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.
Under the terms of the new business restructuring in Mexico, Gerdau will merge Sidertul and Aceros Corsa and Gerdau Corsa into a single company: Gerdau Corsa.
Gerdau said the company’s restructuring aims to simplify its corporate structure in Mexico to strengthen the financial profile of Gerdau Corsa, reduce its financial leverage and expenses, combine its key activities for greater efficiency and synergy.
Gerdau said that prior to completing its business restructuring, Grupo Cordova will acquire a 16.84 percent stake at Sidertul for $32.5 million to “balance” its new stake in the combined Gerdau Corsa business.
As a result, Gerdau will increase its stake in Gerdau Corsa from 70 percent to 75 percent. Gerdau said the transaction is subject to regulatory approval.