Gerdau Ameristeel Acquisition of Chaparral Clears Another Hurdle
09/04/2007 - The Committee on Foreign Investment in the United States okays the Agreement and Plan of Arrangement for Gerdau Ameristeel’s acquisition of Chaparral Steel.
The Committee on Foreign Investment in the United States has concluded its review of the Agreement and Plan of Arrangement for Gerdau Ameristeel’s acquisition of Chaparral Steel Co. The agency determined that there are no issues of national security sufficient to warrant a second-stage investigation.
Consummation of the merger remains subject to customary conditions, including adoption of the Agreement and Plan of Merger by Chaparral's stockholders.
Headquartered in Midlothian, Texas, Chaparral Steel Co. is the second-largest producer of structural steel beams in North America. Chaparral also supplies steel bar products, and is a leading North American recycling company.
Gerdau Ameristeel is the second-largest minimill steel producer in North America with annual manufacturing capacity of over 9.0 million tons of mill-finished steel products. Through its vertically integrated network of 17 minimills (including one 50% owned joint venture minimill), 17 scrap-recycling facilities, and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries.
