Brazilian integrated steelmaker Gerdau allowed its Spanish subsidiary Gerdau GLT Spain to propose a $96 million capital increase into Gerdau’s Mexican subsidiary, Gerdau Corsa, holding company Gerdau SA said.
The company said Gerdau GLT Spain’s proposed capital increase, which will be distributed in Mexican pesos (MXN), will be subject to the approval of Mexican authorities. As soon as Mexican authorities approve the transaction, the Spanish subsidiary will issue an additional $24 million, Gerdau said. Gerdau did not explain the reason for the two-phase capital increase.
Gerdau Corsa is a Mexico City-based mini-mill that produces long steel. It is a joint venture (JV) between Gerdau and Corsa.