6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

dated January 9, 2007

Commission File Number 1-14878

GERDAU S.A.

(Exact Name as Specified in its Charter)

        N/A       

(Translation of Registrant’s Name)

Av. Farrapos 1811

Porto Alegre, Rio Grande do Sul - Brazil CEP 90220-005

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   X   Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No   X  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused the Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:  January 9, 2007

GERDAU S.A.

By:/s/Osvaldo Burgos Schirmer       

Name:  Osvaldo Burgos Schirmer

Title:   Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description of Exhibit
99.1	Press release, December 28, 2006

EX-99.1

Exhibit 99.1

PRESS RELEASE

GERDAU S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) announces to its shareholders and investors that its Spanish subsidiary Corporación Sidenor, S.A. in which it has a 40% stake in its capital stock, completed today the acquisition of all outstanding shares issued by GSB ACERO, S.A., subsidiary of CIE Automotive, and have signed the corresponding documents after meeting all contracted conditions and after getting the authorization issued by the Spanish Free Trade Authorities.

The purchase price for all GSB ACERO, S.A. shares which will be adjusted based on the financial results to be disclosed on December 31^st, 2006, is of approximately € 111.5 million in addition to a net debt of about € 11 million totaling € 122.5 million.

Gerdau S.A. has a 40% stake in Corporación Sidenor, S.A. together with a Santander Group company with another 40%, and Sidenor executives’ holding company with the remaining 20%.

Rio de Janeiro, December 28, 2006.

Osvaldo B. Schirmer

Executive Vice President

Director of Investor Relations