ArcelorMittal Brasil S.A. and Votorantim S.A. on Thursday announced the signing of a definitive agreement, pursuant to which Votorantim’s long steel businesses in Brazil, Votorantim Siderurgia, will become a subsidiary of ArcelorMittal Brasil and Votorantim will hold a minority stake in ArcelorMittal Brasil.

The combination of the businesses will result in a long product steel producer with annual crude steel capacity of 5.6 million tonnes and annual rolling capacity of 5.4 million tonnes, an official statement from ArcelorMittal said.

Production facilities include ArcelorMittal Brasil’s sites at Monlevade, Cariacica, Juiz de Fora, Piracicaba and Itaúna, and Votorantim Siderurgia’s sites at Barra Mansa, Resende and its participation in Sitrel, in Três Lagoas. The merger is expected to generate cost, logistical and operational synergies.

The combined businesses production facilities are geographically complementary, enabling closer proximity, and higher levels of service, to its customer base. The transaction is subject to regulatory approvals in Brazil, including the approval of the Brazilian anti-trust authority CADE

 

Source:economictimes.indiatimes.com

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