Steel groups pursue acquisitions in Colombia

Colombian steel producer Siderurgica del Occidente (Sidoc) appears to be fending off several offers to buy the company. It has not been considering any takeover bid, although this could change in the due course.

The steelmaker has received offers from Brazil’s Gerdau and Votorantim – which both already have operations in Colombia – and also from ArcelorMittal as well. In Colombia, compared to its Brazilian competitors, ArcelorMittal is relatively weak.

Gerdau controls the long steelmakers Diaco and Comsisa, the rolling mill Aceros Boyacá and the special steelmaker Sidelpa. Votorantim operates Acerías Paz del Río and is now finalising the acquisition of a major local service centre, G&J Ferreterías.

Another local steelmaker, Sidenal, is also receiving offers from the same three companies, Steel Business Briefing hears. Sources at Sidoc and Sidenal confirm the existence of approaches from international groups.

Colombian sources tell SBB that ArcelorMittal is likely to increase its bid for Sidoc, fearing that it may lose its last chance of making a substantial acquisition in Colombia, a fast growing steel market.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: April 11, 2008