Brazilian conglomerate Votorantim inked a deal to sell Argentine steel producer Acerbrag to Mexico’s Grupo Simec, as it continues to withdraw from the mining and metals sector.
While Votorantim didn’t disclose the value of the deal, a report in business news portal Pipeline put the deal at around BRL2 billion ($360 million).
The transaction, which is pending regulatory approval, would seal Votorantim’s exit from the steel industry. It sold its long steel assets to the Luxembourg-based Arcelor Mittal in 2017 and divested Colombian steelmaker Acerías Paz del Rio five years ago.
Earlier this year, the conglomerate sold its 69% stake in aluminum producer Companhia Brasileira de Alumínio to China’s Chalco and Anglo-Australian Rio Tinto for BRL4.7 billion. And in August, it sold a majority stake in its zinc mining division Nexa Resources to Swedish mining company Boliden for $1.3 billion.
Votorantim says the Acerbrag transaction is consistent with its “active portfolio management strategy.”
Its portfolio spans the banking, pharmaceutical, energy and real estate sectors.
Guadalajara-based Simec said in a separate release that the acquisition will enable it to expand in South America, as Acerbrag exports its steel products to several countries in the region.