Brazil's Gerdau plans broad reorganization amid grim steel outlook
SAO PAULO, July 14 (Reuters) - Gerdau SA, the Americas' largest steelmaking group, announced on Tuesday a broad corporate reorganization that aims at taking better advantage of the firm's growing size in markets other than home turf Brazil amid weak demand and pricing for steel products.
Under the plan, which the Porto Alegre, Brazil-based firm announced in a securities filing, Gerdau will pay 1.986 billion reais ($633 million) to buy out minority shareholders in four units, integrate South American operations outside Brazil in a single unit and merge the company's iron ore unit into its Brazil operations. Gerdau plans to formally present the new structure in the third-quarter earnings report, the filing added.
($1 = 3.1365 Brazilian erais) (Reporting by Guillermo Parra-Bernal, Editing by Franklin Paul)
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