Under the terms of the transaction, which was first reported by Metal Bulletin sister title American Metal Market in October last year, Gerdau has agreed to sell mills in Jacksonville (Florida), Knoxville (Tennessee), Rancho Cucamonga (California) and Sayreville (New Jersey), as well as certain other facilities to CMC.

The mills have combined capacity for 2.5 million tons per year, Gerdau said on Tuesday January 2.

The deal was part of the company’s “global transformation, in order to be more profitable in an extremely competitive steel market,” according to executive vice chairman Andre Gerdau Johannpeter.

“This deal represents an important milestone in our strategy to reduce financial leverage and focus on better return opportunities in the markets where we operate,” he added.

The transaction is expected to be finalised before the end of the year.