Gerdau, Latin America’s largest steelmaker, bought a 52 percent stake Siderperu for $62.7 million from the Peruvian government, fending off India’s Global Steel Holdings Ltd. The government acquired the stake in the company based 422 kilometers north of Lima last March in lieu of money owed. The price was a 25 percent premium over the current stock market value of the company’s shares.
Category: Regions
Posted inDaily Brief
Peruvian Congress Ratifies U.S. Trade Pact
Peruvian legislators overwhelmingly approved a free trade agreement with the United States that would boost the economy through increased exports. The government now hopes the U.S. Congress will do the same before the summer recess, although even ministers admit this may not be easy.
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Colombian Pension Funds Offer $285 Mln For Gas Distributor
A group of Colombian pension funds bid $285 million for the company’s main natural gas distributor, now called Transportadora de Gas del Interior (TCI). The new company springs from the sale of state utility Empresa Colombiana de Gas Natural, which operates 3,644 kilometers of gas pipelines. The sale is part of the Colombian government’s privatization program.
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SABMiller Sells Colombian Juice Business for $55.3 Mln
SABMiller sold its Colombian juice business to local company Gaseosas Posada Tobon for $55.3 million, divesting itself of a non-core business. The company was part of the brewer Bavaria, which SABMiller bought last year. Based in South Africa, SABMiller is the second largest brewer of beer in the world.
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Mexico May Issue 30-Year Bond After Elections
Mexico expects market conditions after Sunday’s presidential elections to be calm enough to allow it to sell 30-year government bonds, according to Finance Minister Francisco Gil Diaz. At a press conference ahead of the weekend he said Mexico’s fiscal and economic conditions are stable and there is no danger of any market wobbles. Up until President Vicente Fox’s win in 2000, the previous three presidential elections were marked by economic crises.
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Palacio Completes Cabinet Reshuffle
Ecuador’s president, Alfredo Palacio, has completed his cabinet reshuffle, changing a third of his ministers. The cabinet will have five new faces following the departures of the ministers of economy, interior, foreign trade, public works and secretary general of administration. Armando Rodas becomes the new economy minister to replace Diejo Borja and Jorge Illingworth steps back to become foreign trade minister in place of Joaquín Zevallos who took over at the end of May. Lawyer Rafael Parreño is appointed secretary general of administration to replace José Modesto Apolo. The replacements for interior minister Felipe Vega and head of public works, Derlis Palacios have yet to be announced.
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Spain’s Grupo Calvo Cuts El Salvador Tuna Operation in Half
Spanish tuna producer said it will fire 600 workers in El Salvador after the country lost preferential access to the European market, forcing it to halve the number of shifts operating at its facilities. The tuna will be subject to a 20.5 percent tariff because El Salvador has refused to comply with all World Trade Organization rules. The government is trying to negotiate with the European Union but the Spanish company does not believe it will be successful.
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Venezuela to Build Gas Pipeline to Colombia
Venezuela will begin building a $280 million natural gas pipeline to Colombia next month. The 230-kilometer pipeline will link Punta Ballenas to Maracaibo in Venezuela. The two countries are also considering extending the pipeline to Panama, which would open Central America to Venezuelan gas.
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Mexican Economy Grew 1.8 Percent in April, Preliminary Figures Show
Preliminary figures show the Mexican economy expanded 1.8 percent in April compared with a year earlier. Growth was weak because Holy Week, when many factories close down, fell in April this year, compared with March in 2005.
Posted inDaily Brief
Mexico Lifts Aerocalifornia’s Flying Ban
Mexican authorities lifted a flying ban on Aerocalifornia, a small private airline, after the company took measures to improve safety procedures. Investigations had shown Aerocalifornia had not carried out mandatory maintenance nor kept a record on the origin and installation date of some spare parts. Five planes have now been cleared to resume service after undergoing an extensive overhaul.