October 17, 2017 / 12:07 PM / 2 years ago

Brazil's Gerdau may sell U.S. facilities for $630 million: report

BRASILIA (Reuters) - Brazilian steelmaker Gerdau SA (GGBR4.SA) could raise about 2 billion reais ($630.48 million) with the potential sale of its rebar-producing facilities in the United States this year, newspaper Valor Econômico reported on Tuesday.

Gerdau expects to sell its Rancho Cucamonga, California, Sayreville, New Jersey, and Knoxville, Tennessee, units to U.S.-based Commercial Metals Co (CMC.N) by the end of the year, according to the report that citing two market sources. Gerdau’s Jacksonville, Florida, and Beaumont, Texas facilities were also up for sale, the paper reported.

Gerdau said while it does not comment on market rumors, it will maintain its strategy of focusing on more profitable assets.

The potential deal would help the largest steelmaker in the Americas cut debt, according to the newspaper.

Gerdau earlier this month agreed to sell a Chilean long steel unit to local firms Matco SA and Ingeniería & Inversiones SA for about out $154 million.

Preferred shares, the company’s most widely traded class, were up about 6 percent year to date.

Reporting by Silvio Cascione; Editing by Bernadette Baum and Jeffrey Benkoe

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