Votorantim Siderurgia, the long steel arm of Brazil-based Votorantim Industrial Group, has decided to reduce its capital structure in Colombia, according to a filing at the Colombian securities exchange commission, Simev.
Under the terms of the capital restructuring, Colombian steelmaker Acerias Paz del Rio will incorporate Votorantim Siderurgia’s other entities into its own operations, including Inversiones Paz del Rio and Minas Paz del Rio. Acerias Paz del Rio will assume all assets and obligations of the other two entities.
The reasons for the reduced capital structure include synergies resulting from the merger, cost reductions, and the loss of fiscal incentives through the local Zona Franca status.