Grupo Simec, SA de CV announced that the Mexican Federal Commission of Competition notified Industrias CH, SA de CV (ICH) and Simec, of its authorization to acquire the Mexican steelmaking facilities of Industrias Ferricas del Norte, SA (Grupo Sidenor).

Simec expects this acquisition, which should close by the third quarter of 2004, to substantially increase its installed capacity, sales and net income. It will be financed with internally generated resources as well as borrowings from ICH. Simec will not acquire any liabilities as part of this acquisition (other than seniority premiums associated with certain employees) and, as a result, will maintain its solid financial structure, free of indebtedness.

The acquisition will be made by Simec and its subsidiaries due to the greater synergy and economies of scale between Simec's plants in Mexicali and Guadalajara with Grupo Sidenor's plants in Apizaco, Tlaxcala and Cholula, Puebla.