ArcelorMittal Brasil and Votorantim to combine long steel business
Votorantim will hold a minority stake in ArcelorMittal Brasil. Votorantim’s long steel operations in Argentina (Acerbrag) and Colombia (PazdelRío) were not included in the transaction.
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.
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.
Until closing, ArcelorMittal Brasil and Votorantim Siderurgia will remain fully separate and independent companies. ■