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Gerdau divests from some Latin American subsidiaries

Friday, 19 January 2024 22:51:04 (GMT+3)   |   Sao Paulo
       

Brazilian steel producer Gerdau announced the sale of its interests at Gerdau Diaco and Gerdau Metaldom. The buyer of the interests is the INICIA group, the current partner of Gerdau in these joint ventures.

The companies have operations in the markets of Colombia, the Dominican Republic, Panama and Costa Rica.

The transaction price was $325 million, in an operation in line with Gerdau’s strategy to allocate capital in assets with higher potential in the long term.

According to analysts from the Brazilian arm of JP Morgan, the sale is considered as positive, under a decision of “divesting non-core assets to fund long-term value creation assets.”


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