Gerdau-Chaparral Deal Clears New Hurdle

In a letter dated Aug. 29 that the companies received Friday, the Committee on Foreign Investment in the United States said the acquisition did not raise enough national security concerns to warrant further review, Chaparral said. That decision ends the committee's oversight of the transaction.

Last week, the companies cleared another regulatory hurdle when a required waiting period expired without action by the Federal Trade Commission or the Department of Justice.

The deal, which values Chaparral at $86 per share in cash, must still be approved by Chaparral's stockholders. The purchase price represents a 14 percent premium over the company's closing price before the deal was announced in July.

Shares of Gerdau, which is based in Toronto and has executive offices in Tampa, Fla., rose 11 cents to $11.58 in afternoon trading. Shares of Chaparral, based in Midlothian, Texas, increased 3 cents to $85.47.