Gerdau says buyout of units taking place at adequate valuation
SAO PAULO, July 17 (Reuters) - Gerdau SA, the largest steelmaker in the Americas, said on Friday that a plan to spend 1.986 billion reais ($621 billion) buying out four units in a broad reorganization program took place under adequate valuations and market conditions.
Under the plan, Gerdau will buy the remaining stakes it does not yet own in Gerdau Aços Longos SA, Gerdau Açominas SA, Gerdau Aços Especiais SA and Gerdau América Latina Participações SA. The sellers of the stakes are bank Itaú Unibanco SA and AcelorMittal Netherlands BV and not any of Gerdau's controlling shareholders, the company said in a securities filing.
Shares of Porto Alegre, Brazil-based Gerdau shed 4 percent on Friday, the third decline in four sessions. The plan was announced on July 14. (Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama)
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