Votorantim deal 'will make ArcelorMittal more competitive' in Brazil

The combination of the Brazilian long steel businesses of ArcelorMittal and Votorantim Siderurgia, announced earlier today, is intended to strengthen ArcelorMittal’s position in a difficult local market, it said.

The announcement of the acquisition added that Votorantim will have a minority holding in the global steelmaker’s Brazilian subsidiary, but the stakes that Votorantim has in Acerbrag of Argentina and Acerías Paz del Río in Colombia were not part of the deal.
“The Brazilian [steel] market has seen a deep decline, so we started looking for a strategic move that would allow us to become more competitive,” ArcelorMittal Long Carbon Central & South Americas ceo Jefferson de Paula told Metal Bulletin on Thursday.

De Paula’s estimates show that the country’s long steel market fell by 14% in 2016, with growth forecast to...

Published

Felipe Peroni

February 23, 2017

22:44 GMT

São Paulo