October 08, 2008

Gerdau to buy stake in Mexican Corsa

It is reported that Brazilian steelmaker Gerdau has agreed to buy 49% stake in Corsa Controladora the holding company which owns Mexican steel producer Aceros Corsa for USD 100.5 million. Grupo Gerdau and Corsa Controladora have also agreed to invest USD 400 million to build a new steel mill in Mexico with the capacity to produce 700,000 tonnes a year.

Tlalnepantla based Aceros Corsa is a mini mill with the capacity to produce 150,000 tonnes of raw steel and 300,000 tonnes of rolled steel a year.

Gerdau said the deal, which must be approved by regulatory authorities, is part of its strategy to boost its presence in Mexico.

Gerdau first broke into the Mexican market in March, when it bought Siderurgica Tultitlan for USD 259 million.

Besides Brazil, Gerdau also has operations in Canada, the United States, Spain, Colombia, Peru, Chile, Argentina and Uruguay.