Brazilian anti-trust authority, Cade, has maintained its decision to allow the acquisition of Ceará state-based steelmaker Siderurgica Latino-Americana (Silat) by Gerdau, the regulator said.
Mexican-based Grupo Simec, which owns two mills in Brazil, appealed the regulator’s first decision earlier this year. In response, the regulator said the acquisition of Silat by Gerdau doesn’t present any concern to the Brazilian long steel market, as there’s already been consolidation in this segment.
Gerdau announced in November 2019 it would buy a controlling stake at Silat for $110.8 million. Silat, which was owned by Spanish group Hierros Añón, is based in the Brazilian state of Ceará and operates a 600,000 mt/year rebar and wire-rod mill.
Gerdau owns a steel mill near 12.4 miles from Silat, which has a 160,000 mt/year capacity. The company now owns a 96.35 percent stake at Silat, while existing investor Adece will keep its minority 3.65 percent stake.
Gerdau will produce Silat’s existing rebar, wire rod (mesh and drawing grades), and other long products to extend its own product offering.