Brazilian metallurgical group Gerdau has signed an agreement to sell its stakes in two joint ventures in Colombia and Central America to its partner in these joint ventures, the Dominican Republic-based asset management company INICIA.
The joint ventures in question are Diaco, in which Gerdau still holds a 49.85% stake, and Gerdau Metaldom, in which the Brazilian company holds a 50% stake. The deal is valued at $325 million and is expected to close by the end of the first half of this year.
Gerdau is selling to the partner the Colombian mini-mill Diaco with a capacity of more than 300 thousand tons per year, as well as metallurgical and rolling enterprises in the Dominican Republic, Panama, and Costa Rica.
From local media reports, it can be understood that the initiator of the deal was INICIA. The company, which specializes in investments in Central America and the Caribbean, announced its intention to focus on producing materials for the construction industry.
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