Gerdau sells overseas subsidiary

Brazil-based steelmaker Gerdau has announced signing a contract to sell its equity interest in Gerdau Hungary KFT Y CIA Sociedad Colectivo, a subsidiary of the company based in Spain that holds nearly 99 percent of the shares of Gerdau Steel India Ltd. The sale was made to Blue Coral Investment Holdings Pte. Ltd. and Mountainpeak Investment Holdings Ltd.

Included in the sale was 100 percent of Gerdau’s operations and assets in India, including a specialty steel unit located in Tadipatri, India, with an annual installed capacity of 250,000 metric tons of crude steel and 300,000 metric tons of rolled steel.

The sale was made for $120 million, according to Gerdau, “subject to usual adjustments in the acquisition value.” Completion of the transaction is expected by the end of 2018.

The steelmaker says the transaction will allow it to “focus more on managing its strategic assets in the Americas, where its main markets, Brazil and the United States, are located.”