Brazilian steelmaker Gerdau closed a deal to acquire German metals service centre Kloeckner's operations in Parana, Brazil, for an undisclosed value.
Gerdau, historically a long steel producer, has been investing in flat steel assets. The company this week inaugurated its expanded hot-rolling mill, boosting hot-rolled coil (HRC) capacity by 30pc to 1.1mn t/yr.
The company has submitted a request to Brazil's antitrust watchdog Cade seeking approval for the acquisition, before completing the transaction.
Kloeckner has operated in Brazil since 2011, following its acquisition of 70pc of Frefer Metal Plus assets. Last October, the German company announced that it will exit the Brazilian metals market, aligning with its strategy to concentrate investments in European and North American markets.
Besides Parana, Kloeckner has plants in Sao Paulo and Rio Grande do Sul.
