Gerdau S.A. Acquires Full Equity Stake in Dona Francisca Energética S.A.

Gerdau S.A. has submitted a binding proposal and entered into a Share Purchase Agreement with Companhia Paranaense de Energia (COPEL) to acquire COPEL's entire 23.03% equity interest in Dona Francisca Energética S.A. (DFESA) for an enterprise value of R$150 million. This acquisition, along with the previously disclosed acquisition of CELESC's interest, will result in Gerdau holding 100% of DFESA. The transaction, valued at R$300 million in total enterprise value, will increase Gerdau's self-generation capacity by 30.4 average MW, bringing its total self-generated firm energy to 65.94 average MW. This move aligns with Gerdau's capital allocation strategy, aims to enhance cost competitiveness, and supports its decarbonization goals by increasing the use of renewable energy for self-generation, projected to meet over 50% of its energy consumption. The transaction is subject to customary closing conditions, including approval from the Brazilian antitrust authority.