Gerdau agrees to acquire quanex steel unit for $1.67b
Tuesday, 20 November 2007
NEW YORK, Nov 19 (Bloomberg): Gerdau SA, Latin America's largest steelmaker, agreed to acquire Quanex Corp.'s vehicular steelmaking unit for $1.67 billion.
Gerdau will pay $39.20 a share in cash, Houston-based Quanex and Porto Alegre, Brazil-based Gerdau said today in separate statements. The deal doesn't include Quanex's building-products unit, which will be spun off as a standalone company.
Gerdau Chief Executive Officer Andre Gerdau Johannpeter is expanding operations in the Americas, Asia and Europe to reduce costs and gain leverage with suppliers of scrap metal and energy. Gerdau acquired Midlothian, Texas-based Chaparrel Steel Co. in July for $4.22 billion and agreed to buy a 49 percent stake in the owner of Mexico's Aceros Corsa SA in October.
Gerdau will pay $39.20 a share in cash, Houston-based Quanex and Porto Alegre, Brazil-based Gerdau said today in separate statements. The deal doesn't include Quanex's building-products unit, which will be spun off as a standalone company.
Gerdau Chief Executive Officer Andre Gerdau Johannpeter is expanding operations in the Americas, Asia and Europe to reduce costs and gain leverage with suppliers of scrap metal and energy. Gerdau acquired Midlothian, Texas-based Chaparrel Steel Co. in July for $4.22 billion and agreed to buy a 49 percent stake in the owner of Mexico's Aceros Corsa SA in October.