Gerdau S.A. entered into an agreement to acquire remaining 41.23% stake in Gerdau Summit Acos Fundidos e Forjados S.A. from Sumitomo Corporation and The Japan Steel Works, Ltd. for $32.6 million.
Gerdau S.A. (BOVESPA:GGBR4) entered into an agreement to acquire remaining 41.23% stake in Gerdau Summit Acos Fundidos e Forjados S.A. from Sumitomo Corporation (TSE:8053) and The Japan Steel Works, Ltd. (TSE:5631) for $32.6 million on November 21, 2024. A cash consideration of $32.6 million will be paid by Gerdau S.A. As part of consideration, $32.6 million is paid towards common equity of Gerdau Summit Acos Fundidos e Forjados S.A. Upon completion, Gerdau S.A. will own 100% stake in Gerdau Summit Acos Fundidos e Forjados S.A.
The transaction is subject to approval by competition authorities. The transaction is expected to complete in early 2025.
Japan Steel Works Ltd is a Japan-based company mainly engaged in industrial machinery business. The Industrial Machinery segment is engaged in the manufacture, sale, and provision of maintenance services for resin manufacturing and processing machinery, electronic component and display manufacturing equipment, and semiconductor-related equipment. The profile and engineering segment manufactures and sells general cast and forged steel products such as power generation components and nuclear power related components, cast and forged steel components such as functional materials, clad steel sheets, etc. The segment also engages in various non-destructive testing and welding processes, and monitoring, maintenance, inspection, and repair of various equipment and devices. The other segment is engaged in the research, development, manufacturing and sales of new products, and business support and management service business.
Gerdau S.A. entered into an agreement to acquire remaining 41.23% stake in Gerdau Summit Acos Fundidos e Forjados S.A. from Sumitomo Corporation and The Japan Steel Works, Ltd. for $32.6 million.
