Brazil’s Gerdau will grow its operations in the northeastern part of the country after it completed its acquisition of steelmaker Siderúrgica Latino-Americana (Silat). The acquisition will expand Gerdau’s reach in the construction industry.
The South American steelmaker concluded the Silat acquisition, following the final approval of the deal from the Brazilian antitrust authority (Cade) on Tuesday, Gerdau said in a statement.
Silat, which is located in Caucaia in Brazil’s Ceará region, has a rolled steel capacity of 600,000mt per year. The company produces rebar and wire rod to meet the demand from the construction industry.
In November 2019, Gerdau agreed to purchase Silat from two Spanish firms, Hierros Añon and Gallega de Mallas for $110.8mn.
Gerdau now controls 96.35pc of the company’s shares, while the remaining 3.65pc remains under the control of the Economic Development Agency of the state of Ceará.
Brazil’s crude steel output increased by 3.5pc to 2.78mn mt in October this year from 2.69mn mt in the same month last year. Rolled steel output also rose by 12.6pc to 2.1mn mt, from 1.8mn mt produced the same month the prior year.