October 07, 2008

Regulator endorses Gerdau stake acquisition in Comsisa

BNamericas reported that Colombia's industry and trade regulator SIC has endorsed Brazilian Grupo Gerdau's plan to acquire shares in local steelmaker Compañía Siderúrgica de la Sabana.

The Comsisa plant is located in the Tocancipá area of Cundinamarca department, 47 kilometer north of capital Bogotá. The plant began operating in May 2006 after a USD 40 million investments.

A Comsisa executive told BNamericas in late 2007 that the company was in negotiations with Gerdau to sell the plant that manufactures rods and bars that makes up half of Comsisa. He added that the regulator also approved Gerdau to purchase shares in the steelmaker Aceros Boyacá in Sogamoso city that produces nearly 80,000 tonne per year.

The executive said that "We are also forming a strategic alliance in which Gerdau has promised to supply bars to our sales branch, Codiacero.”

He added that with the agreement, local steelmaker Diaco which Gerdau purchased in 2006 will boost output in Colombia to nearly 780,000 tonnes of bars produced at Comsisa.

Aceros Boyacá Procesos consortium holds the other 50% of Comsisa.