Brazil-based steel producer Gerdau announced that it plans to acquire all minority shares in Gerdau Ameristeel Corp. for a cash consideration of approximately $1.6 billion. We are affirming our 'BBB-' corporate credit rating on Gerdau S.A. In our view, the transaction will not have a material negative impact on the expected consolidated financial profile of the company during the next several quarters. We are placing our ratings on Gerdau Ameristeel Corp., including its 'BB+' corporate credit rating, on CreditWatch with positive implications. The negative rating outlook on Gerdau S.A. reflects the difficult industry conditions and an expected financial profile that we would consider somewhat weak for the rating. SAO PAULO (Standard&Poor's) June 3, 2010--Standard&Poor's Ratings Services
