Bloomberg reported that Latin America’s largest steelmaker Gerdau SA is seeking to sell 40% of its mining unit for about USD 2.5 billion.

As per report, Gerdau has hired Goldman Sachs Group Inc. to handle the transaction.

The report quoted a person, who asked not to be identified because the matter is private, as saying that international companies including Chinese and Japanese firms are interested in buying the stake.

Chief Executive Officer Andre Gerdau Johannpeter said November 10 that the company was studying a plan to monetize its iron ore assets, and was considering whether to seek a partner, sell shares of the mining business or develop deposits with its own resources.

Gerdau’s iron-ore mining unit has a total reserve of 2.9 billion tonnes and the company plans to end this year with a production of 7 million tonnes, or 100 percent of its needs.

A Gerdau press official said in an E mailed statement that the company couldn’t comment because it’s in a so called quiet period before earnings are released. A representative of Goldman Sachs declined to comment.

(Sourced from Bloomberg)