CMC to buy Gerdau rebar ops, sources say

Commercial Metals Co (CMC) could buy as many as five rebar mills from Gerdau Long Steel North America in a deal that could close in the coming weeks or months, according to market sources.

If the deal goes ahead, it will up-end the rebar market in the USA, writing off one of three major producers and leaving two mills with big downstream operations in a face-off, market participants said. CMC could also acquire substantial portions of Gerdau’s rebar fabrication operations, if not all such facilities, rebar market sources said. Gerdau operates at least 36 rebar fabrication locations across the USA, according to its website. Mills on the auction block include Gerdau’s Rancho Cucamonga mill in California, which was rumoured for sale as early as May, and mills in Beaumont, Texas; Jacksonville, Florida; Knoxville, Tennessee; and Sayreville, New Jersey. All five mills are known for producing rebar, although the Beaumont mill is chiefly a wire rod mill and only makes coiled rebar. Other mills might or might not be included in the wide-ranging sale, sources said, expressing uncertainty about Gerdau’s merchant bar mills in Charlotte,...

Published

Nat Rudarakanchana

October 10, 2017

22:11 GMT