Grupo Simec to acquire long steel producer Acerbrag

Mexican steelmaker Grupo Simec has reached an agreement with Votorantim to acquire 100 pct of Argentine steel producer Acerbrag as part of its plans to expand its presence in South America.

Acerbrag, located in Bragado in Buenos Aires province, produces long steel products and operates steelmaking and rolling facilities. The company supplies the industrial, construction and agribusiness sectors in Argentina.

Grupo Simec said the acquisition would strengthen its geographic presence in South America, increase its production capacity and create operational and commercial synergies.

The company plans to finance the acquisition using its own funds. Financial terms of the transaction were not disclosed.

The transaction remains subject to customary closing conditions, including regulatory approvals.

Grupo Simec is a Mexican integrated steelmaker specializing in long and special steel products across the Americas. Headquartered in Guadalajara, Mexico, the company operates electric arc furnace-based steelmaking and has operations in Mexico, the United States and Brazil. Its product portfolio includes special bar quality steel, structural sections, rebar, wire rod and cold-finished bars. The company has an installed annual capacity of approximately 4.8 mln tons of crude steel and 5.2 mln tons of rolled products.