Two Steelmakers Merge Brazilian Long Products Operations
02/24/2017 - ArcelorMittal Brazil is acquiring Latin American producer Votorantim SA’s Brazilian long steel business, according to announcements from the companies.
In a statement, Votorantim said its Votorantim Siderurgia unit will become a subsidiary of ArcelorMittal Brazil SA and that it will hold a minority stake in the combined business. No other details of the transaction were provided.
Votorantim said that considering the challenges of the global steel market, the deal is intended to capture synergies by combining two Brazilian long steel operations.
ArcelorMittal said in a translated statement that the combination creates a business with the capacity to roll 5.4 million tons of long products annually.
The Reuters news service reported that the combined business will oversee seven plants located in four Brazilian states. The deal also includes Votorantim’s stake in its Sitrel joint venture, a rebar rolling mill, the news service said.
“The transaction should generate cost, logistics and operational synergies. The production units of the combined companies are geographically complementary, allowing greater proximity and elevation of service levels to their customer base,” ArcelorMittal said.
Votorantim said that considering the challenges of the global steel market, the deal is intended to capture synergies by combining two Brazilian long steel operations.
ArcelorMittal said in a translated statement that the combination creates a business with the capacity to roll 5.4 million tons of long products annually.
The Reuters news service reported that the combined business will oversee seven plants located in four Brazilian states. The deal also includes Votorantim’s stake in its Sitrel joint venture, a rebar rolling mill, the news service said.
“The transaction should generate cost, logistics and operational synergies. The production units of the combined companies are geographically complementary, allowing greater proximity and elevation of service levels to their customer base,” ArcelorMittal said.
