Gerdau to buy rest of Ameristeel for $1.7 billion

Brazilian steelmaker Gerdau offered to pay up to $1.7 billion to take full ownership of its North American unit, looking to reduce borrowing costs and increase efficiency.

Gerdau on Wednesday bid $11 per share in cash for the 33.7 percent of Gerdau Ameristeel stock it does not already own. The offer represents a 53 percent premium to Ameristeel’s closing share price on Tuesday.

[Reuters]